'Less hawkish': BSP says rate cut possible in August

The Monetary Board of the Bangko Sentral ng Pilipinas on Thursday decided to keep policy rates for the fifth straight meeting but hinted at the possibility of easing rates as early as August as inflation is now expected to come in slower than earlier anticipated.In a briefing on Thursday, BSP Governor Eli Remolona Jr. said the Monetary Board kept the target reverse repurchase rate at 6.5%, the overnight deposit rate at 6.0%, and the overnight lending facility rate at 7.0%.

“The Monetary Board reiterates its support for the national government’s non-monetary measures to address persistent supply-side pressures on food prices and to prevent further second-round effects,” he added.Inflation clocked in at 3.8% in April, reflecting the third straight month of acceleration and bringing the first-quarter average to 3.3%. The latest print compares with the 3.7% in March and the 6.6% in April 2023, and is also the fastest since the 3.9% in December 2023.

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