MANILA — The Bangko Sentral ng Pilipinas (BSP) trimmed its benchmark interest rate by 25 basis points to 5 percent, the Monetary Board announced Thursday.

The interest rates on the overnight deposit and lending facilities were likewise adjusted to 4.5 percent and 5.5 percent, respectively.

The BSP said the inflation outlook remains broadly steady, with forecasts at 1.7 percent for 2025, 3.3 percent for 2026, and 3.4 percent for 2027. Inflation expectations, it added, are well-anchored, though possible electricity rate adjustments and higher rice tariffs could push prices upward in the coming years.

“Domestic demand has held firm,” the Monetary Board said, but noted that global economic activity is being tempered by the impact of US policies on trade and investment.

It added that emerging risks will require close monitoring, and monetary policy will be adjusted depending on the evolving outlook for inflation and growth.

The BSP said it remains committed to safeguarding price stability while ensuring monetary settings remain conducive to sustainable economic growth and employment.