BSP Cuts Interest Rates Again: Central Bank Expected to Trim to 4.25% Today
The Bangko Sentral ng Pilipinas (BSP) is widely expected to cut its key interest rate by another 25 basis points today, February 19, 2026, bringing the benchmark rate down to 4.25%. This would mark another significant step in the central bank's easing cycle, which began in 2024 as inflation pressures eased and policymakers sought to support the country's economic momentum. The Monetary Board is set to meet today and announce its decision, which financial markets have already largely priced in.
Economists and market analysts see the expected cut as a measured response to the continued moderation of inflation, which has stayed within the BSP's 2–4% target range for several consecutive months. Ang pagbaba ng interest rates ay nagbibigay ng mas murang pautang para sa mga negosyante at mga mamimili, na nakakatulong sa pagpapalago ng ekonomiya. Lower borrowing costs are expected to encourage investment, boost consumer spending, and support the government's infrastructure and development programs.
The Philippine peso reacted calmly in early trading on Wednesday, with market participants having largely anticipated the move. Bond prices also edged higher as investors positioned for the rate cut. BSP Governor Eli Remolona Jr. has previously signaled a careful, data-dependent approach to monetary easing, emphasizing that the central bank will remain watchful of global factors including U.S. Federal Reserve policy, oil prices, and exchange rate movements.
If confirmed, this cut would be part of a broader regional trend, as several Asian central banks have also eased policy rates in recent months to stimulate growth. Para sa mga Pilipino na may utang sa bahay, sasakyan, o negosyo, ang pagbaba ng interest rates ay maaaring mangahulugang mas mababang monthly payments — isang positibong balita para sa maraming pamilya. Small and medium enterprises (SMEs) in particular stand to benefit from cheaper credit, making it easier to expand operations and hire more workers.
The BSP's decision today will also be closely watched for any forward guidance on further rate adjustments for the rest of 2026. Some analysts believe the central bank may pause after this cut to assess incoming economic data, while others see room for at least one more reduction later in the year. Regardless, the shift toward looser monetary policy reflects confidence that inflation has been tamed — and that the Philippine economy is on a stable footing heading into the second quarter.
Source: Reuters
