Goldman Sachs: PH interest rates to fall

Amid expectations of slower economic growth and lower inflation this year, global investment banking giant Goldman Sachs sees more interest rate cuts

- By BEN ARNOLD DE VERA

Amid expectations of slower economic growth and lower inflation this year, global investment banking giant Goldman Sachs sees more interest rate cuts by the Bangko Sentral ng Pilipinas’ (BSP) Monetary Board (MB) during the next three quarters before pausing its easing cycle.

In an Aug. 7 report, a copy of which was obtained by Manila Bulletin, Goldman Sachs Economics Research lowered its 2025 gross domestic product (GDP) growth projection for the Philippines to 5.4 percent—below the government’s downgraded target range of 5.5 to 6.5 percent—from 5.6 percent previously.

Its Philippine growth forecast for this year is also lower than last year’s 5.7-percent GDP expansion.