Scotiabank Previews This Week's Policy Meetings at Central Banks of South Korea, the Philippines

09:43 AM EDT, 08/25/2025 (MT Newswires) -- The central bank of South Korea (BoK) has already cut by 100bps since last summer, including this May's 25bps reduction, before pausing in July, noted Scotiabank.

The oscillating cut-hold-cut pattern this year might set Thursday's meeting up for a reduction, said the bank. Inflation at 2.1% is close to the medium-term 2% target, but plenty of mixed uncertainties lie ahead.

South Korea has certainty in a bad trade deal with the United States, stated Scotiabank. Concern about the economic outlook, housing imbalances, and won (KRW) stability overhang the decision, though the government's recent decision to apply restrictions on foreign property purchases in Seoul could help counter some stability concerns if the BoK chooses to ease again, added Scotiabank.

The central bank of the Philippines (BSP) is expected to cut by 25bps to a new overnight borrowing rate of 5.0% on Thursday, stated Scotiabank.

At its last decision on June 19, when it cut by 25bps, the Board emphasized "the need for a more accommodative monetary policy stance."

Since then, headline inflation has fallen from 1.3% to under 1%, providing cover for Governor Eli Remolona to deliver on his "quite likely" guidance for a rate cut this time and one more in 2025, according to the bank.

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