Policy rate cuts likely to resume in August

MONETARY policy easing in the Philippines is likely to resume as early as August after the Bangko Sentral ng Pilipinas (BSP) paused on reducing interest rates last week, according to HSBC.

In a comment released late last week, HSBC economist Noelan Arbis said the banking giant saw scope for such easing ahead, “given [the] relatively tepid domestic growth, a less hawkish Fed (US Federal Reserve), and a more benign inflation trajectory in the second half of the year.”