Philippines’ central bank is expected to lower its key rate by 25 bps to 5% on Aug. 28, moving closer to neutral amid softening growth prospects and benign inflation. Household consumption has remained resilient thanks to a strong labor market and subdued price pressures, but capital investment faces risks from US tariff shifts. Headline inflation remains under the 2%-4% target, with June projections at 1.6% for 2025 and 3.4% for 2026, leaving scope for further easing.