Jumbo BSP interest rate cuts seen

The Economist Intelligence Unit (EIU) expects the Bangko Sentral ng Pilipinas (BSP) to cut key interest rates by an additional 100 basis points (bps) for the remainder of 2025 to arrest potentially slower economic growth as a result of the intensifying global trade war.

- BY BEN ARNOLD DE VERA

"The BSP has room to maneuver in its policy stance, given the benign inflation outlook," Alex Holmes, EIU's Asia-Pacific regional director, said in an April 11 report obtained by Manila Bulletin.

EIU noted that first-quarter inflation averaged 2.3 percent, down from 2.6 percent in the previous quarter, as the March headline rate slid to an almost five-year low of 1.8 percent.