BSP may cut rates by 50bps this year

The Bangko Sentral ng Pilipinas (BSP) may cut interest rates by a total of 50 basis points this year, with the first reduction expected on March 19.

PNB economist Jun Trinidad forecasts a 25 basis point cut in March and another 25 basis points in May, revising the outlook for the policy rate to 3.25 percent from 3.75 percent previously.

Economists are divided on whether BSP will follow the Federal Reserve's emergency rate cut amid the economic impact of COVID-19.

BDO chief strategist Jonathan Ravelas expects a 25 basis point cut on March 19, while UnionBank chief economist Carlo Asuncion does not see an urgent need for off-cycle cuts.