Central Bank of the Philippines governor predicts achieving annual inflation rate of 2% by the year 2025
Philippine Central Bank's Monetary Policy Remains Accommodative in 2025
The Philippine Central Bank, also known as the Bangko Sentral ng Pilipinas (BSP), is expected to maintain a supportive monetary policy for the rest of 2025, given the current low inflation environment.
As of July 2025, the inflation rate has eased significantly to 0.9% year-over-year, the lowest in nearly six years [1][4][5]. This sharp slowdown in inflation was primarily driven by slower increases in housing, water, electricity, gas, and other fuel prices, along with lower food prices, especially rice [4][5].
The BSP's Governor, Eli Remolona, stated this confidence at an economic forum on Monday. He also announced that the inflation rate in the first seven months of 2025 was 1.7% [1][4]. Remolona further stated that the BSP aims to achieve a 2% inflation rate for the year, which is the lower end of its 2% to 4% target range [4].
Given this subdued inflation, the BSP would be expected to maintain or potentially ease its key policy interest rate to support economic growth, as there is limited inflationary pressure necessitating rate hikes. However, the exact key interest rate level as of August 2025 wasn't explicitly stated in the search results.
The BSP's next monetary policy review is scheduled for August 28 [4]. With inflation at a six-year low and energy prices declining, the BSP has space to keep interest rates stable or reduce them to stimulate borrowing and investment if needed [5].
It's important to note that the inflation rate of 0.9% in July 2025 is significantly lower than the upper limit of the bank's target range for 2025 (4%) [1][4]. This reduction in inflation reduces pressure on the BSP to raise interest rates.
In summary, the inflation rate in July 2025 was 0.9%, much lower than the 2-4% target [1][4]. The drop in inflation reduces pressure on the BSP to raise interest rates. Monetary policy is likely to remain supportive of growth, with possible rate stability or easing through the rest of 2025. The BSP’s key interest rate was not specifically mentioned but should reflect the subdued inflation environment and the government's efforts to keep prices low [4][5].
For the most up-to-date information on the BSP's key interest rate, it may be necessary to check the BSP's official releases or statements directly.
[1] Philippine Star, "Inflation eases to 0.9% in July," 2 August 2025. [2] Rappler, "BSP to cut key interest rate two more times this year," 3 August 2025. [3] BusinessWorld, "BSP's Remolona sees 2% inflation for 2025," 3 August 2025. [4] ABS-CBN News, "BSP: Inflation rate to remain low for the rest of 2025," 3 August 2025. [5] Inquirer.net, "BSP: Lower inflation allows room for rate cuts," 3 August 2025.
The BSP (Bangko Sentral ng Pilipinas) is anticipated to maintain or potentially ease its key policy interest rate, given the subdued inflation environment in 2025. This implied move from the BSP is to support business growth, as there is limited inflationary pressure necessitating rate hikes.
