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2025-07-28 16:49:09
【Heavy signal: Philippine central bank says it will cut interest rates again this year, economic data is key】 ⑴ The governor of the Philippine central bank said the central bank is committed to maintaining an accommodative policy bias and is expected to cut interest rates twice more this year. ⑵ The timing of the rate cut will depend on economic growth and inflation data. If growth is lower than expected and inflation is better than expected, it will be a good time to cut interest rates. ⑶ The Philippine central bank cut its benchmark interest rate by 25 basis points to 5.25% in June, the lowest level in two and a half years. ⑷ The inflation rate was 1.4% in June and is expected to remain below 2% in July. ⑸ Despite the uncertainty brought about by Trump's tariff remarks, the Philippines' trade agreement with the United States bodes well for economic growth. ⑹ The governor pointed out that the Philippines has solid domestic fundamentals, including ample reserves, stable remittances and slowing inflation. ⑺ He also stressed that central bank independence is an important issue, and the loss of independence may lead to high inflation. ⑻ Despite the impact of the global monetary policy environment, the influence of the Federal Reserve on the Philippine central bank has weakened.
