PHILIPPINE monetary authorities will be wary about cutting interest rates despite recent pronouncements that an easing could start as early as August, analysts said.
'We continue to expect the Bangko Sentral ng Pilipinas to be very cautious and to ease policy only after the US Federal Reserve,' HSBC Global Private Banking said in a note.The central bank will likely only start lowering key interest after the US Federal Reserve, which is expected to start doing so in September.'It is only after the Fed cuts that BSP is likely to embark on its first 25 bp policy rate cut,' HSBC Global Chief Investment Officer James Cheo said.
'The PHP is the region's weakest currency month-to-date and has needed BSP intervention to support it,' the bank said.'We are not looking for any change in BSP policy at this meeting, absent any sudden weakening in the PHP, which could follow any suggestion that front-running the Fed was being reconsidered,' it added.The currency has been trading in the $58:$1 level for a month since BSP Governor Eli Remolona Jr.
Seen 'Very Cautious' In Easing
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