Banks expect May rate cut from BSP
Will timing be ripe enough two months from now?
New Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno and the Monetary Board decided the economy isn’t ready yet for lower interest rates, so they kept key rates steady during their March 21 meeting.
However, global banks are growing certain that the BSP will unwind the high rates come the May 9 monetary policy meeting.
A Business World report quoted three global banks predicting the start of an unwinding session by May.
Analysts from ANZ, HSBC and Capital Economics unanimously foresee a 25 basis point cut in key rates by the next meeting, as inflation is surely down by then.