Sunny Liu, lead economist at Oxford Economics, said the BSP will likely keep the target reverse repurchase rate at a 17year high of 6.5 percent during its meeting on June 27.
"We think inflation pressures and the weak currency will continue to constrain the capability of the BSP to cut interest rates," she said, adding that the BSP is expected to start easing by the fourth quarter. However, it may cut earlier this year if inflationary pressures are under control.
Bank of the Philippine Islands (BPI) lead economist Jun Neri said it is unlikely for the BSP's Monetary Board to change its policy settings on Thursday, but their post-meeting statement may continue to be less hawkish than their rhetoric early this year.
"The BSP can afford a more dovish slant on Thursday following downside surprises on headline inflation prints for April and May. Lower power prices and slower annual increases in rice prices for June may actually lead the BSP to increasingly hint on an August rate cut," he said.
This story is from the June 24, 2024 edition of The Philippine Star.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the June 24, 2024 edition of The Philippine Star.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
BDO introduces digital innovations
Sy-led BDO Unibank Inc. has introduced self-service machines and other digital innovations in its physical branches nationwide as part of its strategy of combining digital and physical banking channels to make financial services more accessible for Filipinos.
Tiu returns as president of Phl Infradev
Businessman Antonio Tiu has returned at the helm of listed Philippine Infradev Holdings Inc. after resigning from the post last year.
![Citi sees 150 bps rate cuts in 2 years](https://reseuro.magzter.com/100x125/articles/21915/1757104/nTuy3xFoa1720293366974/CITI-SEES-150-BPS-RATE-CUTS-IN-2-YEARS.jpg)
Citi sees 150 bps rate cuts in 2 years
Global banking giant Citi expects the Bangko Sentral ng Pilipinas (BSP) to cut borrowing costs by a total of 75 basis points this year and another 75 basis points in 2025, which will provide support to the Philippines’ economic growth.
middle-income Phl to attain upper status by late 2025, says NEDA
The Philippines remains on track to achieving upper middle-income status by late next year after exceeding its gross national income (GNI) per capita target last year, the National Economic and Development Authority (NEDA) said.
EDC switches on P7-B geothermal plant in Albay
Energy Development Corp. (EDC), the renewable energy (RE) arm of Lopez-led First Gen Corp., has switched on its 28.9-megawatt (MW) geothermal plant, valued at around P7 billion, in Manito, Albay.
CNPF hikes spending to support expansion
Century Pacific Food Inc. (CNPF), the listed food and beverage firm of the Po family, is hiking its capital spending this year to fund capacity expansion projects to support the company’s double-digit growth target for the year.
Say hello to wheat straw cups
Tzu Chi Foundation, which originated in Taiwan, has scheduled a charity run on July 21 for one, three, five and 10 kilometers at the UP Diliman campus.
![Security Bank to double green, sustainable loans](https://reseuro.magzter.com/100x125/articles/21915/1757104/9JxYUHI4y1720293040161/SECURITY-BANK-TO-DOUBLE-GREEN-SUSTAINABLE-LOANS.jpg)
Security Bank to double green, sustainable loans
Security Bank Corp. plans to double its new sustainable loans to about P80 billion by the end of 2025 as it seeks to take advantage of the growing financing needs for the country’s green transition.
![Citizen scientists mobilized to protect Verde Island Passage](https://reseuro.magzter.com/100x125/articles/21915/1757104/dZuGMl87C1720292962266/CITIZEN-SCIENTISTS-MOBILIZED-TO-PROTECT-VERDE-ISLAND-PASSAGE.jpg)
Citizen scientists mobilized to protect Verde Island Passage
The Verde Island Passage (VIP), one of the country’s marine treasures, has received invaluable help from the Lopez Group, which organized an 18-member team of citizen scientists.
Phl, 4 Asian countries to link instant payment systems
The Bangko Sentral ng Pilipinas (BSP) and its global partners have completed the blueprint for the third phase of its Nexus Project and is now preparing for the final phase, which includes the live implementation of cross-border payments connectivity globally.