THE BANGKO SENTRAL ng Pilipinas (BSP) may further ease this year as the corruption scandal may continue to dampen government spending and economic growth, Nomura Global Markets Research said.
In a report dated Jan. 9, Nomura Chief ASEAN (Association of Southeast Asian Nations) Economist Euben Paracuelles and Macroeconomic Research Analyst Yiru Chen said the BSP could deliver one 25 basis points (bps) each at its February and April meetings.
“Our forecast is underpinned by our more cautious view on the growth outlook, which is the overriding policy consideration for BSP,” they said. “The negative output gap has widened sharply, adding to a benign inflation outlook.”
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