FX.co ★ Philippines Cuts Interest Rates to 4.50% as Economic Strategy Evolves

MANILA, Philippines – In a bid to stimulate economic growth, the Bangko Sentral ng Pilipinas (BSP) has reduced its key interest rate from 4.75% to 4.50%. The decision, announced on December 11, 2025, reflects the country's ongoing efforts to navigate a challenging global economic landscape.

This rate cut marks a significant shift in the central bank’s monetary policy and aims to provide a needed boost to the Philippines' economic activity. By lowering the cost of borrowing, the BSP hopes to encourage spending and investment among consumers and businesses, potentially offsetting external economic pressures.

The move comes amid a period of careful economic strategy as the Philippines adjusts to evolving global financial conditions. The central bank's decision underlines its commitment to supporting domestic economic resilience and sustainable growth. Analysts and market participants will keenly watch the impact of this change in the coming months to gauge its effectiveness in reviving the economic momentum.