BSP may resume policy easing by April, Moody's Analytics predicts

The Bangko Sentral ng Pilipinas (BSP) may resume its policy easing by April, with Moody's Analytics predicting a potential rate cut at the Monetary Board's April 3 meeting.

This follows the BSP's unexpected pause last week, where key interest rates were maintained at 5.75 percent.

Capital Economics and Moody's Analytics noted that global uncertainties, particularly US trade policies and tariffs, create challenges for monetary easing in emerging markets like the Philippines.

HSBC ASEAN economist Aris Dacanay stated the pause was to maintain flexibility amidst global trade uncertainties.

Moody's Analytics economist Sarah Tan believes a rate cut is likely soon, as inflation remains within the BSP's target range of two to four percent and economic growth is slightly below expectations.

However, Tan warned that inflation remains the biggest risk to the Philippine economy, citing elevated food inflation due to weather disruptions and potential global inflation rises from US tariffs affecting supply chains.