Results of the second-quarter performance of the Philippine economy, due out today, Thursday, will be a crucial factor for the central bank’s next move on monetary policy.
“Improvement in the second quarter from the first quarter would lead the BSP [Bangko Sentral ng Pilipinas] to keep its cautious view on policy,” Joey Cuyegkeng, senior economist at ING Bank Manila, said.
Better second-quarter growth compared with the first-quarter performance is seen allowing the BSP to remain vigilant against any financial market volatility that could arise from sustained peso weakness.
“As long as long as the peso moves in line with Asian currencies, the BSP is likely to keep its policy settings steady for the rest of the year,” Cuyegkeng said.
ING Bank Manila had forecast that GDP growth in April to June 2015 would rise 6 percent year-on-year.