BSP May Cut Rates in December Amid Economic Slowdown

The Bangko Sentral ng Pilipinas (BSP) may lower policy rates again in December as the economy slows and inflation remains low, analysts said.

Nomura economists Euben Paracuelles and Yiru Chen noted the drop in GDP growth to 4% in the third quarter from 5.5%, citing weaker government spending and consumer demand due to corruption-related controversies.

HSBC’s Aris Dacanay added that the BSP could consider a larger “jumbo cut” to offset limited fiscal support amid stalled public expenditures.

Report by Melany Reyes

 — Analysts

The Bangko Sentral ng Pilipinas (BSP) may lower policy rates again in December as the economy slows and inflation remains low, analysts said.

Nomura economists Euben Paracuelles and Yiru Chen noted the drop in GDP growth to 4% in the third quarter from 5.5%, citing weaker government spending and consumer demand due to corruption-related controversies.

HSBC’s Aris Dacanay added that the BSP could consider a larger “jumbo cut” to offset limited fiscal support amid stalled public expenditures.

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