Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona Jr. hinted at a potential interest rate cut by August 15, following a report showing inflation eased to 3.7 percent in June from 3.9 percent in May.
Speaking at an economic forum on Monday, Remolona underscored BSP’s readiness to act independently of the US Federal Reserve’s rate decisions.
He highlighted the possibility of a preemptive rate reduction before the Federal Open Market Committee (FOMC), pointing to a moderation in domestic inflation trends that may have already peaked.
“We must exercise caution to avoid prolonged delay in easing, which could result in economic output losses,” Remolona told members of the Economic Journalists Association of the Philippines (EJAP).
He said there is scope for further easing, potentially as early as August. Among the factors that will influence BSP’s decision-making include the peso approaching P59 against the US dollar.
Remolona acknowledged global currency fluctuations, noting the peso’s depreciation against the US dollar amid its status as a safe-haven currency. He attributed this trend to global uncertainties and the Fed’s policy stance, bolstering the dollar’s strength.
