BSP poised to cut rates to aid growth, keep in step with Fed: HSBC

ABS-CBN News

Posted at Jul 11 2019 09:37 AM | Updated as of Jul 11 2019 09:55 AM

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MANILA -- The Bangko Sentral ng Pilipinas could cut interest rates as early as August with economic growth to keep up with the US Federal Reserve and rev up economic growth, an analyst said Thursday.

Gross domestic product growth in the April to June period could fall below 6 percent, as "tepid" imports point to slower than expected infrastructure spending, said HSBC Asia economist Noelan Arbis.

The Federal Reserve could cut the US benchmark rate as early as July, for a total of 50 basis points this year after its chairman, Jerome Powell, signaled that a reduction was forthcoming.

"The key point here is the Fed is about to cut," Arbis told ANC's Market Edge. "That means other central banks will follow and that includes the Philippines."

Cooling inflation gives the BSP "more ammunition to support growth," he said.