Central bank likely to continue easing despite inflation uptick, say analysts

THE BANGKO SENTRAL ng Pilipinas (BSP) will likely continue its rate-cutting cycle despite the slight uptick in November inflation, analysts said.

However, risks such as the weakening of the peso could prompt the central bank to be more cautious about further easing.

“Overall, the inflationary pressures were not broad-based, and the near-term outlook remains benign. Therefore, we think the BSP will lower its policy rate by 25 basis points (bps) at its next meeting in December,” ANZ Research said.