Aris Dacanay, economist for ASEAN at HSBC, said the second quarter gross domestic product data supports an August policy rate cut as GDP grew by 0.5 percent quarter-on-quarter, slower than the 1.5 percent quarterly average prepandemic.
“Based on historical trends, growth momentum is indeed waning, supporting our view that full-year growth will remain below trend in 2024 at 5.8 percent,” Dacanay said.
He said the BSP may cut its policy rates next week despite inflation rising to a nine-month high of 4.4 percent in July.
“With growth momentum slowing, the BSP will likely begin its easing cycle next week, starting with a 25-basis-point cut to 6.25 percent. We expect the BSP’s policy rate to be six percent by yearend and then five percent by end-2025,” he said.
This story is from the August 10, 2024 edition of The Philippine Star.
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This story is from the August 10, 2024 edition of The Philippine Star.
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