MANILA – Monetary easing and election-related spending will reignite the Philippine economy's growth momentum this year, after it was dragged by a delay in the passage of the national budget, an analyst said Tuesday.
Gross domestic product will likely grow 6 percent this year and 6.4 percent in 2020, said HSBC Private Banking Asia chief market strategist Fan Cheuk Wan.
Fan said the Bangko Sentral ng Pilipinas could cut the benchmark lending rate by another 25 basis points and the reserve requirement by another 100 basis points in the fourth quarter this year.
The BSP earlier cut benchmark interest rates by 25 basis points in May and announced a 200-basis point cut in RRR to be implemented in tranches.
The peso is expected to reach P54 to a dollar by year-end, Fan said.