Philippine Rate Cut Likely to Come After Fed, Finance Chief Says

(Bloomberg) — The Philippine central bank will “most probably” lower its key interest rate after the Federal Reserve’s own policy easing, according to Finance Secretary Ralph Recto who sees more than one cut this year.

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The Bangko Sentral ng Pilipinas will consider inflation and other data and the spread of Fed rates over domestic rates before cutting, Recto, a member of the BSP’s policy-making Monetary Board, said in a mobile phone message on Thursday.

“Surely, it will assess effect on exchange rates and local inflation before it makes a decision on timing,” he said.

Recto, who earlier flagged a potential 150 basis points in rate reductions through 2025, also said the central bank can possibly implement four rate cuts next year.

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