Philippines: No surprises in monetary policy – ANZ

Sanjay Mathur, analyst at ANZ, point out that although the overnight RRP rate was expectedly left unchanged at 4.75% in Philippines and prevailing monetary settings were characterised as appropriate, the Bangko Sentral ng Pilipinas (BSP) has further reduced its 2019 inflation forecast.

Key Quotes

“Overall domestic activity was characterised as firm although delays in the passage of the 2019 budget are seen as risks.”

“We believe that the BSP will initiate a rate cutting cycle of a cumulative 75bps from May when inflation dips closer to the midpoint of its target range of 2-4%.”