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BSP may cut despite Fed hold as growth disappoints
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BusinessWorld Online
THE BANGKO SENTRAL ng Pilipinas (BSP) may deliver a sixth straight cut in February, despite the US Federal Reserve’s decision to stand pat, amid weaker-than-expected Philippine economic growth in the fourth quarter, analysts said.
The BSP’s key policy rate stands at an over three-year low of 4.5%, bringing its interest rate differential with the Fed to 75 bps.
Philippine economic growth slumped to a five-year low of 3% in the fourth quarter of 2025, bringing the full-year print to 4.4%.
This, Mr. Mapa said, raises the odds of deeper easing by the Monetary Board, especially as inflation remains muted.
“The disappointing (fourth-quarter) print bolsters the case for additional easing from BSP while inflation remains subdued,” he said.