BSP expected to cut rates this month - Metrobank

THE Bangko Sentral ng Pilipinas (BSP) may again reduce key borrowing costs this month with inflation remaining subdued, Metropolitan Bank & Trust Co. (Metrobank) said.

- — Katherine K. Chan

“With inflation still below target and forecast to remain (consistent with targets) over the policy horizon, BSP is likely to consider cutting rates further to support sagging growth momentum,” Metrobank Chief Economist Nicholas Antonio T. Mapa said via Viber.

A Business World poll of 15 analysts yielded a median estimate of 1.6% for November inflation, within the BSP’s 1.1% to 1.9% projection for the month.

If realized, last month’s inflation would be below the 1.7% reported in October and the 2.5% year-earlier reading. The analyst consensus level for November would bring 11-month average inflation to 1.7%, on pace with the BSP’s full-year forecast.