Philippine central bank signals easing on course after Trump win
THE Philippine central bank is on course for more rate cuts, Governor Eli Remolona said on Tuesday (Nov 19), even as Donald Trump’s win has cast uncertainty over the global economy and policy rate path.
Another quarter-point reduction in the key rate is still on the table for December, possibly followed by 100 basis points in cumulative cuts next year, Remolona told reporters at an event in Cebu.
“We’re still in the easing cycle,” the Bangko Sentral ng Pilipinas governor said, repeating that rate reductions will likely be done in quarter-point increments.
Remolona is signalling a sustained monetary easing cycle even as Trump’s win in the US presidential elections could upend the US Federal Reserve’s policy calculus. Expectations of a Fed rate cut next month have been pared back, after Chairman Jerome Powell signalled no rush to further lower rates.
The BSP chief sees inflation staying within the 2 to 4 per cent target this month, giving authorities leeway for easing. He also said the central bank has been intervening “a little bit” in the foreign exchange market, adding that a depreciation in the currency, unless sharp, won’t be necessarily inflationary.
“We monitor the swings that take place over a few months, not daily,” Remolona said.
The Philippine peso has lost almost 1 per cent this month, nearing its record low of 59 to a dollar, amid Trump’s threat of steep tariffs.
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