MANILA: The Philippine central bank is open to cutting rates at its first policy meeting in 2025, and is monitoring global policy and geopolitical developments that could stoke inflation, Bangko Sentral ng Pilipinas Governor Eli Remolona said on Friday.

The BSP’s policy-making Monetary Board will meet six times next year to set the benchmark rate, although the schedule is yet to be finalised, Remolona said.

“We will be comfortable with just baby steps in terms of easing or not easing,” he said in a Bloomberg TV interview.

Philippine central bank cuts policy rate by 25 bps, as expected

On the Philippine peso, the central bank saw the current weakness as driven by US dollar strength and is more concerned about volatility than longer-term depreciation, Remolona said.

The peso closed at a record-low 59 per dollar on Thursday, after the central bank cut its key interest rate by 25 basis points to 5.75% as expected.