Philippines unlikely to opt for half-point cut, says Nomura


At the core of Nomura’s conservative forecast is the expectation that the BSP would “adhere more strictly to its inflation targeting framework” and be “more driven” by the latest data on inflation. — Bloomberg

MANILA: There’s only a 15%t chance that the Bangko Sentral ng Pilipinas (BSP) will resort to a forceful half-point rate cut at its hotly anticipated policy meeting today, according to Nomura Global Markets Research, citing the need for a “calibrated” shift to easier monetary setting.

In a commentary, the Japanese investment bank instead assigned an 80% probability that the powerful Monetary Board would opt for a modest quarter point cut at its meeting today.

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