BSP’s Monetary Board Reduces Policy Meeting Frequency for 2025

The Bangko Sentral ng Pilipinas (BSP) announced that its Monetary Board will reduce the frequency of its policy-setting meetings to six per year in 2025, down from the current seven.

Enhancing Policy Analysis

In a statement released Friday, the central bank explained that the shift to bimonthly meetings will allow for more comprehensive data analysis and provide additional time for consultations with sector experts.
“This change to bimonthly intervals will enable more in-depth analysis of data updates and provide the BSP with greater scope for consultations with sector experts on its forecast assumptions,” the BSP said.

Policy Context

The Monetary Board utilizes monetary policy tools, such as interest rate adjustments, to manage inflation and stabilize the economy. In 2024, the board implemented three rounds of monetary easing, reducing rates by 25 basis points each in August, October, and December for a total of 75 basis points.

The key policy rate, known as the overnight reverse repurchase rate, is a critical tool for controlling the money supply and maintaining price stability. It influences borrowing costs and money flows between banks and the central bank.

2025 Meeting Schedule

The BSP released the 2025 schedule for its Monetary Board meetings, including the publication dates for the Monetary Policy Report and highlights from the meetings. This new structure aims to align policy decisions more closely with updated economic data and expert insights.

As the central bank continues to refine its processes, the adjustment underscores the BSP’s commitment to ensuring effective monetary policy amid evolving economic conditions.