MANILA, Philippines — The Bangko Sentral ng Pilipinas may cut interest rates by as much as 150 basis points in the next two years mainly due to the downtrend in inflation, according to Finance Secretary Ralph Recto.
“The spreads between the US and the Philippines should not be too different or else you might have flight to safety,” he said. However, the BSP remains cautious of upside risks to the inflation outlook as inflation may breach the two to four percent target from May to July, but will return to the target in the second half.
“The inflation trends are encouraging. However, I think we need to be aware that there are still upside risks to the inflation outlook,” he said.
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