MANILA, Philippines — The Bangko Sentral ng Pilipinas will likely cut its policy rate by the end of the year following a similar move this month, which came “sooner than expected,” a Fitch unit said. In a research note sent to reporters Wednesday, Fitch Solutions forecasted a 25-basis point cut in the BSP’s benchmark rate by end-2019 that, if realized, would bring the key rate to 4.25% from the current 4.5%. For 2020, Fitch Solutions said it sees another 25 bps reduction in the policy rate to 4%. “We believe some potential inflationary pressures will persist over the coming quarters, and as such forecast just one further cut in 2020... This would likely see the BSP embark on a more aggressive easing cycle into 2020 to help support the economy as external demand wanes,” Fitch Solutions said.

Source: Philippine Star May 22, 2019 10:37 UTC