Jun Neri News Today

Economist warns it’s premature to cut rates; biz leaders expect interest rates to remain steady

Inflation rate goes up 5.3 % in August

AYALA-LED Bank of the Philippine Islands (BPI) projects a 6.3-percent growth for the domestic economy this year and 6.5 percent for next year, seen to be buoyed by increased spending as inflation decelerates further.

For context, painful inflation has softened after soaring to 14-year highs towards the end of 2022.

Aris Dacanay, economist for ASEAN at HSBC, said the further easing of inflation to a 12-month low of 6.1 percent in May from 6.6 percent in April keeps the policy rate outlook unchanged

Economists believe the inflation downtrend will give the Bangko Sentral ng Pilipinas more space for a longer pause that may see key policy rates on hold until next year.

For the fourth consecutive month, inflation slowed down further in May mainly due to declines in the prices of commodities in the indexes of transport and ...

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The Monetary Board also noted that while GDP growth has remained robust in the first quarter of 2023, demand indicators have also pointed to a potential moderation in the recent months

It is still too early to talk about rate cuts even after the Bangko Sentral ng Pilipinas ended its year-long tightening cycle with a prudent pause last Thursday, monetary officials said.