The Bangko Sentral ng Pilipinas is considering two more cuts to key borrowing costs, driven by easing inflation and an economic slowdown attributed to consumer and business uncertainty.

Two cuts are “possible,” BSP Governor Eli M. Remolona Jr. told reporters on the sidelines of the 32nd BSP Anniversary Multimedia Exhibit Opening and The Governors Speak Book Launch on Thursday, July 3.

While not specifying the size of potential reductions, Remolona confirmed the possibility of two more, citing a “slowdown in growth—that’s due to uncertainty.”

“Big-ticket consumption items are being postponed, investments are being delayed, and exports too—because global growth has also slowed down,” Remolona said. He also said the BSP still has three more policy meetings scheduled for this year, including one in August, October, and December.

Aside from slower growth, the continued easing of inflation and the outlook for subdued price increases are also among the major considerations for the BSP in weighing potential future cuts, Remolona affirmed.

Over a week ago, Remolona and other economic managers adjusted the gross domestic product (GDP) target downwards to 5.5 to 6.5 percent from 6 to 6.5 percent previously, citing increased external uncertainties, especially the ongoing Middle East conflict and the imposition of United States (US) tariffs.

According to Remonola, this downscaled economic growth target is more realistic than the previous target range. This may also enable further reductions by year-end.

“There’s room because inflation is low and growth is a bit lower also, except that the cuts cannot really compensate entirely for the slowdown in growth,” Remolona said.

The Philippine economy expanded by 5.4 percent in the first quarter of 2025, a rate significantly slower than the 5.7 percent growth recorded in the same period last year. It also accelerated modestly, almost at a stagnant pace, from 5.3 percent in the previous quarter.

May’s 1.3-percent inflation was the slowest price movement in five-and-a-half years since 2019. June inflation will be released on Friday, July 3. Remolona said the BSP is retaining its inflation target of two percent to four percent as “for now.” He said this remains under evaluation.