BSP set to cut interest rates by 25bps to 5.5% on April 10

Economists predict that the Bangko Sentral ng Pilipinas (BSP) will cut interest rates by 25 basis points to 5.5% on April 10, as inflation cools and global trade uncertainties ease.

With March's headline inflation at 1.8%, down from February’s 2.1%, economists see ample room for monetary easing.

Analysts like HSBC's Aris Dacanay and Moody's Analytics' Sarah Tan expect the central bank to continue its easing cycle, with further reductions planned for August and December.

The recent cut in banks' reserve requirement ratio is expected to enhance monetary transmission, making past rate cuts more effective.

With a stable peso and strong domestic demand, the BSP will likely proceed with additional rate cuts throughout 2023.