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BSP May Cut Rates Amid Weak GDP Signals

10/6/2025

Summary

BSP Considers Rate Cut

The Bangko Sentral ng Pilipinas (BSP) may cut rates by 25 basis points in December if November GDP data weaken.
Analysts expect a pause at the October meeting due to inflation risks.
The U.S. services sector stagnated in September, with orders falling, complicating Federal Reserve decisions.
The U.S. government shutdown delayed key reports, raising uncertainty around inflation and labor markets.

History

Historical Context

In response to the 2008 financial crisis, the Federal Reserve slashed interest rates to near zero, aiming to stimulate economic recovery after the collapse of major institutions like Lehman Brothers. This unprecedented action marked the lowest rates in Fed history, lasting until December 2015. Today, the Bangko Sentral ng Pilipinas considers similar measures amid economic stagnation and inflation concerns, reflecting ongoing global monetary challenges.

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BSP Considers Rate Cut

The Bangko Sentral ng Pilipinas (BSP) may cut rates by 25 basis points in December if November GDP data weaken.
Analysts expect a pause at the October meeting due to inflation risks.
The U.S. services sector stagnated in September, with orders falling, complicating Federal Reserve decisions.
The U.S. government shutdown delayed key reports, raising uncertainty around inflation and labor markets.

1 / 2