Philippines: BSP forecast to keep monetary policy unchanged – UOB

The central bank of the Philippines (BSP) is predicted to keep the reference rate unchanged at its meeting on Thursday, suggested UOB Group’s Economist Lee Sue Ann.

Key Quotes

“The continuing downshift in inflation keeps real interest rates negative and the door open for further policy rate cuts.”

“However, in its latest monetary policy statement, BSP sounded more upbeat on the global and domestic economic outlook, whilst BSP Governor keeps on hinting at status quo in monetary policy for some time.”

“Hence, we stick to our view that BSP will leave its overnight reverse repurchase rate unchanged at 2.25% through 2021.”