Monetary Board's first policy meeting for 2025 moved a week earlier

The Monetary Board of the Bangko Sentral ng Pilipinas (BSP) has moved its first policy meeting for the year to a week earlier, as Governor Eli Remolona Jr. is set to fly to Paris during the earlier set schedule.

In a statement released Tuesday, the central bank said the Monetary Board meeting on policy stance will be held on February 13, 2025, instead of the earlier set February 20, 2025.

“The BSP Governor will be attending the Financial Action Task Force Plenary Working Group Meetings in Paris, France from 17-20 February 2025,” the statement read.

The central bank earlier announced a reduction in its frequency of monetary policy stance meetings this year to six from seven in 2024.

“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.

The five remaining meetings for the year will be on April 3, June 19, August 28, October 9, and December 11, 2025.

The Monetary Board lowered the monetary policy rates thrice in 2024 for a total reduction of 75 basis points — 25 basis points each in August, October, and December.

Monetary policy or interest rates are among the tools used by central banks to stabilize inflation by controlling the money supply by raising or reducing borrowing costs.

The central bank sets the policy rates, in which the central bank borrows from banks to maintain price stability. Should the benchmark rate be raised,  it would shift money from banks into the central banks while a reduction in rates would push more money into circulation. — RSJ, GMA Integrated News