More analysts see another 25-bps rate cut

More economists expect the Bangko Sentral ng Pilipinas (BSP) to reduce its policy rate by another 25 basis points today, continuing the central bank's easing cycle which began in August.

- By KEISHA TA-ASAN

In a report, Capital Economics said the BSP would likely bring down its key rate by 25 basis points to six percent today in response to the weakening economic growth and falling inflation.

"The economy is in need of further support," Capital Economics said. "Gross domestic product (GDP) growth slowed in the second quarter to 0.5 percent quarter on quarter from 0.9 percent in the first quarter, on the back of declines in both private consumption and exports."

It also said that fiscal tightening and weak export demand may keep economic activity subdued in the coming months.