Analysts bet on BSP to further cut rates

AS LOW INFLATION LINGERS

- By KEISHA TA-ASAN

Analysts from Citi, Bank of the Philippine Islands and HSBC all expect inflation to remain manageable in the near term, driven by sustained food disinflation and easing oil prices.

Citi maintained its forecast of three more 25-basis-point rate cuts, one each in August and October this year, and another in February 2026.

"We see inflation remaining below BSP's two to four percent target range through the first quarter of 2026, with downside risks amid further signs of slowdown in external and domestic demand in April to May," Citi said.

The global financial giant kept its 2025 inflation forecast at 1.7 percent, but trimmed its 2026 estimate to 2.8 percent from 2.9 percent, citing sustained disinflation in food and fuel as well as softening domestic and external demand.