BSP briefs Marcos on economic outlook

THE Bangko Sentral ng Pilipinas (BSP) briefed President Ferdinand R. Marcos, Jr. on the country’s economic outlook as the central bank signaled that it is nearing further policy easing.

Mr. Marcos met with BSP Governor Eli M. Remolona, Jr. in Malacañang on Tuesday to discuss the central bank’s recent interest rate cut and prospects for economic growth, the Presidential Communications Office (PCO) said on Wednesday.

The PCO did not say whether the meeting also covered the peso’s recent weakness against the dollar. The local currency closed at P59.261 a dollar, strengthening by 19.4 centavos from its P59.455 finish on Tuesday, data from the Bankers Association of the Philippines showed.

The peso has been trading around the P59 level since controversy erupted over anomalous flood control projects, with its weakest close so far at P59.46 on Jan. 15.

Malacañang has said there is no need for the BSP to intervene in the foreign-exchange market despite the peso’s weakness, adding that authorities are closely monitoring currency movements.

In December, the BSP lowered its benchmark policy rate by 25 basis points to 4.5%, down from 4.75% in October 2025 — the lowest level in more than three years.

The rate cut came as the Philippine economy faced headwinds from a multibillion-peso corruption scandal that disrupted public spending and dampened growth.

The BSP expects economic expansion to remain modest through the first half, before rebounding in 2027 with support from earlier monetary easing, the PCO said.

The country’s gross domestic product (GDP) grew 4% in the third quarter of 2025, the slowest in more than four years. Economic Secretary Arsenio M. Balisacan attributed the slowdown largely to reduced infrastructure outlays after the flood control controversy.

Mr. Balisacan said full-year growth for 2025 likely settled at 4.8% to 5%, below the government’s 5.5% to 6.5% target. Official full-year GDP data for 2025 will be released on Jan. 29.

The Development Budget Coordination Committee has also lowered its growth projections, setting targets of 5% to 6% for 2026 and 5.5% to 6.5% for 2027.

Despite the downgrade, the World Bank expects the Philippine economy to recover over the next two years. It said private consumption is likely to strengthen if inflation stays low, employment remains steady and easier monetary policy brings down borrowing costs, encouraging households and businesses to spend and invest. — Chloe Mari A. Hufana