Philippines: BSP seen on hold later this week – UOB

The central bank of Philippines (BSP) is expected to keep interest rates unchanged at its event later in the week, suggested Lee Sue Ann, Economist at UOB Group.

Key Quotes

“BSP has slashed its policy rate by a total of 175bps to a new low of 2.25%, and the reserve requirement ratio (RRR) by a cumulative 200bps to 12.00%.”

“Given narrowing real interest rates as headline inflation inches higher, BSP has limited room to ease policy rates. Hence, we expect BSP to keep rates unchanged in the near-term”.