Philippine central bank governor confident inflation will hit 2% in 2025

[MANILA] The Philippine central bank is confident of achieving a 2 per cent inflation rate this year, the lower end of its 2 per cent to 4 per cent target range, Governor Eli Remolona said on Monday.

“We think we will hit 2 per cent in 2025,” Remolona told an economic forum.

The annual inflation rate was 0.9 per cent in July, the lowest rate since October 2019. That brought the average rate in the first seven months of 2025 to 1.7 per cent.

Remolona told Reuters on July 28 that the central bank was on track to cut its key interest rate, currently at a two-and-a-half-year low of 5.25 per cent, two more times this year, with the timing dependent on the outlook for growth and inflation.

The BSP’s next monetary policy review is on Aug 28. REUTERS