Inflation data may ease policy, boost stocks

Analysts expect Philippine stocks to be influenced by the release of May inflation data on Thursday, which could indicate a potential for further policy easing.

Japhet Louis O. Tantiangco from Philstocks Financial suggests that a low inflation print below the BSP's 2%-4% target range would boost market sentiment and support continued policy easing.

The Philippine Statistics Authority will release May inflation data on Thursday, with analysts predicting it to ease to an over five-year low of 1.3%, slower than April's 1.4%.

BSP Governor Eli M. Remolona has hinted at two more 25-basis point cuts this year, with the next reduction possible as early as June 19.

Investors are also advised to watch for Philippine manufacturing data on June 2 and labor market figures on June 6, along with global trade developments, including recent US tariff decisions and their impact on markets.

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