Another rate cut looms in June - BMI

The Bangko Sentral ng Pilipinas (BSP) is expected to deliver another 25-basis-point (bp) interest rate cut in June following its latest monetary easing move, according to BMI Country Risk & Industry Research.

- By KEISHA TA-ASAN

Last week, the BSP reduced its benchmark policy rate by 25 bps to 5.50 percent, in line with market expectations. BMI said this move signals a shift to a more accommodative stance amid manageable inflation and growing downside risks to the country's economic outlook.

"We maintain our forecast that the BSP will further lower rates by 50 basis points to five percent in 2025," BMI said.

"We are holding off from revising our projection, until there is more clarity on how US' protectionism policies will evolve."