President Ferdinand R. Marcos Jr. met with Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona on Wednesday to discuss the October 2025 monetary policy decision and the promising trajectory of the country’s economy.
The meeting highlighted the BSP Monetary Board’s recent decision to reduce the key policy rate, a move driven by a favorable inflation environment and aimed at stimulating economic demand and growth.
Governor Remolona reported that inflation has significantly eased, settling at 1.7 percent. Crucially, inflation for the bottom 30 percent of households registered at –0.4 percent.
In response to this improved outlook, the Monetary Board decided to cut the policy rate to 4.75 percent.
“This reduction in the policy rate is a proactive measure to support more affordable borrowing for Filipino families and businesses, thereby stimulating domestic demand and ensuring sustained economic activity,” Governor Remolona stated.
The BSP provided a positive medium-term inflation outlook that underscores the country’s economic stability:
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2026 Inflation Forecast: Approximately 3.1 percent, which is within the target range.
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2027 Inflation Forecast: Approximately 2.8 percent.
While the economy experienced slower growth in 2025, a robust recovery is anticipated. The economy is projected to regain momentum in 2026 and return to the government’s target growth range by 2027.
President Marcos Jr. reaffirmed his administration’s commitment to prioritizing fiscal prudence and structural reforms.
“My administration remains committed to safeguarding economic stability and creating conditions that foster sustained, broad-based growth that benefits all Filipinos,” the President stated following the meeting.
