Economist discounts further BSP rate cuts

An economist from BPI discounts additional cuts in BSP key rates due to negative real interest rates.

Despite low inflation, further rate cuts are expected to bring only marginal benefits for the economy.

The current overnight reverse repurchase rate is at a record low of 2.25%, with headline inflation at 2.4% in August.

BSP has already reduced key policy rates by 175 basis points since the start of the year and provided PHP300 billion to the national government under a repurchase agreement.