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June rate cut by BSP likely on the table, analysts say
Economists anticipate the Bangko Sentral ng Pilipinas (BSP) will implement another 25-basis-point policy rate cut at its June 19 meeting, following a recent reduction.
Deutsche Bank's economist for the Philippines, Junjie Huang, maintains a forecast of a quarter-point rate reduction in June, aligning with current expectations.
The BSP may implement a total of 25 to 50 basis points in rate cuts for the year, potentially completing the easing cycle.
Tame inflation and the potential for further easing support the BSP's flexibility to cut rates to support growth amid global economic headwinds.
Concerns over economic growth have heightened due to US President Donald Trump's tariffs, which have compounded challenges for the Philippine economy.
The BSP may be compelled to cut rates more aggressively if higher US tariffs are implemented.
BSP Governor Eli Remolona Jr. hinted at further cuts and the end of the easing cycle this year.
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