BSP may cut rates twice, GDP growth seen at 5.5%

Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. indicated that a rate cut remains possible at the central bank's August policy meeting.

Remolona noted that the Monetary Board could still trim rates two more times this year, with meetings scheduled in late August and twice in October and December.

The BSP chief also stated that further easing beyond these cuts is unlikely unless there is a significant economic downturn, emphasizing that the current benchmark rate stands at 5.25 percent.

Key data releases such as second-quarter GDP will be available by the next policy meeting on Aug. 28, with Remolona expecting GDP to have expanded by around 5.5% in the quarter.

Regarding the peso's depreciation against the dollar, Remolona said the BSP does not have a target for the currency and is comfortable with it at the P57 level despite its recent weakening.