MUFG sees room for further policy easing

THE BANGKO SENTRAL ng Pilipinas (BSP) could further lower interest rates this year to bolster economic growth amid benign inflation and global trade uncertainties, MUFG Global Markets Research said.

“Growing trade headwinds will keep many regional central banks in a policy easing cycle to support growth, amid contained inflation,” it said in a recent report.

“We expect BSP to cut the policy rate by another 50 bps (basis points) in the rest of this year, given rapidly moderating inflation.”