BSP to take 'baby steps' on rate cuts

Following a sharper-than-expected slowdown in February inflation, the Bangko Sentral ng Pilipinas (BSP) is maintaining a cautious approach to monetary easing as any interest rate cuts this year will likely be done in "baby steps."

- KEISHA TA-ASAN

In a forum hosted by the Tuesday Club at the EDSA Shangri-La Hotel, BSP Governor Eli Remolona Jr. said that inflation last month fell outside the central bank's forecast range on the lower side.

"We did miss the inflation number on the low side. If we're going to miss it, that's the way to miss it, right? So we're happy about that miss," he said, adding that the BSP would look at the March inflation data before the next policy meeting.

The Monetary Board's next policy meeting has been rescheduled to April 10, pushed back from its original April 3 date. This will allow the BSP to consider the March inflation data, which is set for release on April 5.

While the BSP remains in an easing cycle, Remolona also said that the central bank has yet to determine the magnitude of rate cuts for the year.