Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. indicated on Tuesday that the central bank is contemplating an additional 25-basis-point cut in the key policy rate at its upcoming monetary policy meeting. He emphasized that such a move remains under active consideration as the Monetary Board reviews early second-quarter economic growth data alongside inflation figures for July.

Remolona highlighted that recent clarifications on tariff matters have contributed positively to the outlook. Specifically, the US administration agreed to reduce tariffs on Philippine exports from a previously threatened 20 percent to 19 percent, while exempting various sectors from tariffs on goods imported from the Philippines, thereby moderating the overall economic impact.

"The tariff situation has been clarified a bit, which is helpful," Remolona said, noting that despite the modest tariff changes, the BSP can sustain its accommodative monetary policy stance. He added, "We're not a large trading economy, so this limits the overall impact on us."

Global economic growth has shown signs of deceleration, which could influence domestic economic conditions; however, decreases in oil prices are expected to support inflation management, the central bank chief remarked.

The BSP’s Monetary Board has implemented two rate cuts this year after a brief pause in February, currently setting the benchmark interest rate at 5.25 percent. Governor Remolona previously suggested the possibility of up to two additional reductions before the end of 2025.

The next Monetary Board meeting is scheduled for August 28, with subsequent meetings planned for October 9 and December 11.

Following a first-quarter gross domestic product (GDP) growth rate of 5.4 percent—which lagged behind the initial target range of 6.0 to 8.0 percent and prompted a downward revision to 5.5-6.5 percent for the year—Remolona expressed optimism about an improvement in the second quarter.

"We expect growth to be around 5.5 percent for April to June," he stated.

The Philippine Statistics Authority is set to release preliminary second-quarter GDP data on August 7, while July inflation statistics will be reported on August 5.