THE Bangko Sentral ng Pilipinas (BSP) will likely match the US Federal Reserve (Fed) and order a 50-basis-point rate cut later this month, a Fitch Solutions unit said.
THE Bangko Sentral ng Pilipinas will likely match the US Federal Reserve and order a 50-basis-point rate cut later this month, a Fitch Solutions unit said.The US central bank could reduce its policy rate by a total of 125 basis points this year, BMI Research said on Tuesday, which would give the BSP added room to ease policy.
Another 50 bps cut by the Fed in December could prompt the BSP to again act, and BMI said 'we now think that the BSP will lower the policy rate to 5.50 percent in 2024 and 4.50 percent in 2025.'August's rate cut brought the BSP policy rate to 6.25 percent.'If we are right, nominal interest rate differentials between the two countries will be maintained at current levels of around 125 bps' by year-end, BMI said.With the terminal rate seen at a pre-pandemic level of 4.
Seen Delivering 50 Bps Cut This Month
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