BSP seen to cut rates anew on Thursday

Analysts expect the Bangko Sentral ng Pilipinas (BSP) to cut its benchmark interest rates by 25 basis points on Thursday, February 13, for a fourth consecutive meeting.

This expected rate cut is supported by within-target inflation and weaker-than-expected fourth-quarter GDP growth, which fell short of the government's target for 2024.

If realized, the cut will lower the reverse repurchase rate to 5.5% from the current 5.75%.

A majority of 11 out of 14 private-sector economists polled anticipate the quarter-point cut, while two projected a pause.

One economist from the Economist Intelligence Unit (EIU) believes the BSP should hold current rates to assess the economy after three consecutive cuts in 2024.

However, Union Bank of the Philippines chief economist Ruben Carlo O. Asuncion argued that cutting the local policy rate by another 25 bps to 5.50 percent would protect the local economy from external risks.