PHP: BSP seen delivering final cut – BBH
|Brown Brothers Harriman’s (BBH) Global Head of Markets Strategy Elias Haddad anticipates the Philippine central bank will cut rates by 25 bps to 4.25%, likely marking the end of its easing cycle after 200 bps of reductions since mid‑2024. Swaps markets mostly price this final move, while still-positive real rates are viewed as supportive for the Philippine Peso’s (PHP) uptrend.
End of easing but Peso supported
"Philippine central bank (BSP) is expected to cut rates 25bps to 4.25% (Thursday). At its last December meeting, BSP cut rates 25bps to 4.50% and noted that “the Monetary Board sees the monetary policy easing cycle nearing its end.”"
"BSP has cut rates 200bps since its easing cycle began in mid-2024 and the swaps market price in 70% odds of one final 25bps cut to 4.25% in the next twelve months."
"Still, positive real rates support the uptrend in PHP."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.