Philippine rate cuts aim to stimulate economy, possibly at the cost of bank profits.

The Philippine Central Bank's rate cuts aim to boost the economy but may slow bank profit growth due to lower lending rates. Banks saw a 10.6% increase in earnings in the first quarter of 2025, but net interest margins have narrowed. The BSP expects two more rate cuts this year, which could increase consumer lending but also raise credit risks and expenses. Despite slower lending growth in April, experts see it as a positive sign for the economy.