Bangko Sentral ng Pilipinas (BSP) governor Eli Remolona Jr. hinted at more rate cuts before the year ends as inflation eases.
"We have a policy meeting in October and another in December. So, 25,25 [basis points] is possible, in principle)," Remolona said on the sidelines of a forum held at the Asian Development Bank (ADB).
During its last meeting last month, the BSP Monetary Board reduced key interest rates by 25 basis points to 6.25%.
The BSP noted that the balance of risks to inflation tilted toward the downside for this year and 2025.
Headline inflation eased to 3.3% in August from 4.4% in July.
The Philippine Statistics Authority will release September inflation data on Oct. 4.
"We have to look at the numbers. The last number will not be decided. The last number that we get, the September number that will be released next week, that feeds into our projections," Remolona said.
"What we care about is the projection for one year from now because the effect of the monetary policy is slow. So that is the relevant number."
He said headline inflation could further ease in September.
Opmerkingen