BELOW-TARGET June inflation gives the Bangko Sentral ng Pilipinas (BSP) room to continue its easing cycle this year, but unexpected price shocks and the US Federal Reserve’s rate path could affect this outlook.
Finance Secretary and Monetary Board member Ralph G. Recto said in a statement on Friday that the lower-than-expected June inflation print “provides more room for the BSP to further cut policy interest rates to help us further boost the spending power of Filipinos, drive in more investments, and grow the economy, especially amid rising global uncertainties.”
“With the outlook for inflation remaining favorable and recent guidance from the BSP leaning dovish, another rate cut in the coming months is possible,” Bank of the Philippine Islands Lead Economist Emilio S. Neri, Jr. said in a note.
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