‘Private consumption likely to improve’MANILA, Philippines — Despite the economy slowing down to just 5.2 percent in the third quarter, private consumption may strengthen in the coming quarters due to receding inflation and easing monetary policy of the Bangko Sentral ng Pilipinas (BSP), analysts said. “We see private consumption growth improving further in the fourth quarter alongside receding inflation, reduced unemployment, improved consumer confidence and a hike in minimum wages that took effect in the third quarter,” he said. According to Gonzales, the uptick in credit growth is in line with improving consumption and investment. Prior to the cuts, the BSP kept its policy rate steady for six straight meetings since November 2023 to anchor inflation and inflation expectations. Gonzales said the third-quarter GDP slowdown strengthens the likelihood of another 25-basis-point rate cut from the BSP in December.

Source: Philippine Star November 08, 2024 17:31 UTC