Policy Rate Updates: US Fed and BSP: Clear Path for a Pivot?

Like the US Fed, the Bangko Sentral ng Pilipinas (BSP) maintained the benchmark interest rates at its current level of 6.50%, for a second meeting since its off-cycle policy rate hike in October.

The BSP Monetary Board remains firm on keeping the door open for further policy rate adjustments as domestic headline inflation is only expected to return to within target in 3Q 2024. In our view, however, the BSP has concluded its tightening cycle and will keep rates unchanged at 6.5% until the third quarter, followed by at least two cuts by end-2024.

Download our full report below for more details.