Manila Bulletin
Rate cuts likely, but BSP still wary of inflationary pressures
The Bangko Sentral ng Pilipinas (BSP) is expected to cut interest rates on December 19, the last Monetary Board policy meeting for the year.
This measured approach comes as inflation trends downwards and remains within the two percent to four percent target range.
The government announced a higher November inflation of 2.5 percent, up from 2.3 percent in October, which was within the BSP's projection of 2.2 percent to three percent.
The BSP believes inflation expectations remain well-anchored with robust domestic demand and solid economic growth, but officials are mindful of lingering upside risks to inflation.
These upside risks for 2025 and 2026 include potential adjustments in electricity rates and higher minimum wages outside Metro Manila.
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The Bangko Sentral ng Pilipinas (BSP) forecasts inflation for November to be between 2.2% and 3%.
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The Philippines' inflation rate rose for the second consecutive month to 2.5% in November 2024, up from 2.3% in October, primarily driven by faster increases in food and transportation costs.
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Government interventions successfully maintained inflation within the target range of 2 to 4 percent for November, according to the National Economic and Development Authority (NEDA).
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The Asian Development Bank (ADB) has lowered its inflation forecast for the Philippines to 3.3 percent for 2024, down from 3.6 percent.
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