THE BANGKO SENTRAL ng Pilipinas (BSP) may delay its easing cycle amid continued risks to the inflation outlook, the peso’s depreciation and a hawkish US Federal Reserve, analysts said.
“We expect BSP to start its cutting cycle only after the Fed (i.e., in October), which is when we also expect inflation to be more entrenched within BSP’s 2-4% target,” Nomura Global Markets Research said in a report.
According to Nomura data, the Philippines was among the top countries facing “underlying inflationary pressures” in Asia, second only to Singapore.
Nomura sees the BSP cutting rates by 50 basis points (bps) this year and another 100 bps in 2025.
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