MANILA — President Ferdinand R. Marcos Jr. met with Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. in Malacañang to be briefed on the central bank’s recent policy decision to reduce interest rates and to discuss the country’s economic outlook.

The Monetary Board (MB), the BSP’s highest policymaking body, decided last December to cut the key policy interest rate to 4.5 percent from 4.75 percent in October 2025.

The MB also lowered the interest rate on overnight deposits to 4 percent from 4.25 percent, and reduced the rate on overnight lending facilities to 5 percent from 5.25 percent.

In its latest monetary policy meeting, the BSP projected that economic growth would remain modest through the first semester of 2026 before rebounding in 2027, partly supported by earlier policy easing. The MB said its current monetary easing cycle is nearing its end.

Meanwhile, the World Bank expects the country’s economic growth to recover over the next two years.

The World Bank said private consumption could be boosted if inflation remains low, employment stays strong, and monetary easing leads to lower interest rates that would encourage businesses and households to spend and invest more.

It also expects investment to strengthen as public infrastructure projects resume and recent liberalization reforms improve the business environment.

To ensure long-term and sustained growth, the World Bank said low-income and middle-income regions should continue to grow faster than Metro Manila.