The Bangko Sentral ng Pilipinas (BSP) Monetary Board kept the Target Reverse Repurchase (RRP) rate unchanged at 4.25 percent at its 25 March 2026 meeting, judging that raising rates now could further dampen already weak economic growth while inflation pressures stem mainly from supply shocks linked to the Middle East conflict’s impact on global oil and fertilizer prices. The pause follows a cumulative 150-basis-point easing cycle delivered in six 25-bp steps between April 2025 and February 2026. Latest BSP forecasts show headline inflation breaching the 4.0 percent ceiling in 2026 before easing back within the tolerance range in 2027, while expectations remain well anchored; the Board nonetheless flagged upside risks from higher fuel costs and transport fares against a backdrop of soft domestic demand. The conflict-driven surge in commodity prices is filtering through to domestic fuel costs, intensifying near-term price pressures. The Board pledged continued vigilance and said it stands ready to act to counter any second-round effects and safeguard price stability.
Central Bank of the Philippines 2026-03-25
BSP keeps Target RRP rate unchanged at 4.25% (25 Mar 2026)
Bangko Sentral ng Pilipinas left the target reverse repurchase rate at 4.25 % on 25 March, pausing after 150 bp of cumulative cuts since April 2025 amid fragile growth and supply-driven inflation from Middle East conflict-related commodity shocks. The Board expects headline inflation to breach the 4 % ceiling in 2026 before easing in 2027 and pledged vigilance against second-round effects.