LOAN GROWTH is seen to improve next year as the Philippine central bank is expected to further cut policy rates, S&P Global Ratings said.
“We think that the loan growth will start to pick up, but at a very slow rate,” S&P Global Director and Lead Analyst Ivan Tan said in a webinar on Wednesday.
“We think that most of the loan growth pick-up is going to come in 2025. That’s when we are forecasting the policy rate will be cut to 5% by next year.”
The Monetary Board last week lowered the target reverse repurchase (RRP) rate by 25 basis points (bps) to 6.25% from 6.5%, which was the highest rate in over 17 years.
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