Philippines: Central bank to maintain status quo today - TDS

Analysts at TD Securities are expecting no change from the Philippines central bank BSP at this meeting, with the overnight borrowing rate likely to be maintained at 4.75%.

Key Quotes

“A lower than expected CPI reading in October at 6.0%, y/y, dropping from 6.7%, y/y in October, will give the BSP some breathing space. Although BSP governor Espenilla maintained a “vigilant” stance even after the CPI release, we think BSP is likely to wait to assess the impact of the previous 175bp of rate hikes before pulling the trigger again. Inflation remains a long way above the BSP’s 2-4% target and as such we don’t see potential for rate cuts on the horizon yet, though the direction of travel is a positive one.”