Philippines: BSP expected to keep its rates on hold – UOB

The Bangko Sentral np Pilipinas (BSP) is broadly predicted to keep its key rates unchanged at this week’s event, according to Lee Sue Ann, Economist at UOB Group.

Key Takeaways

We sense that BSP is now prioritizing the domestic growth outlook over a potential return of inflation risk. This is premised on two additional lines specifically highlighting weaker growth prospects compared to Jun’s statement, with a same inflation storyline.

Given the overall tone of the latest MPS and forward guidance remain in line with our expectation, we maintain our view that BSP will continue to leave its RRP rate unchanged at 6.25% in the remaining months of the year.