The Philippine central bank left its benchmark interest rate unchanged at an off-cycle meeting on March 23, 2026, after a 25bp cut in February that brought total easing since August 2024 to 225bps. The pause indicates that policymakers are evaluating the lagged effects of earlier rate cuts on growth and inflation before taking further action.
“As a data-driven monetary authority, and in light of fast-changing developments and uncertain economic conditions, the Monetary Board met today and decided to maintain the policy rate at 4.25%,” the Bangko Sentral ng Pilipinas said in a statement.
The central bank noted that inflation may exceed the 4.0% ceiling this year but is projected to move back toward the target range by 2027. It highlighted that near-term upside risks to prices are largely supply-driven—factors that are less responsive to monetary policy—while also pointing to continued weak economic growth in 2026. “To raise the policy rate at this time would delay the recovery,” it added.
