BSP easing cycle seen extending until next year

DBS said the BSP will likely stay “on a dovish path” to support economic growth. — The Inquirer

MANILA: The Bangko Sentral ng Pilipinas (BSP) might have to extend its easing cycle up to 2026 to match the slower pace of rate cuts in the United States, Singapore-based DBS Bank says.

In a commentary, DBS nevertheless said the BSP will likely stay “on a dovish path” to support economic growth even as the US Federal Reserve (Fed) had hinted at fewer rate reductions for this year.

“Governor Remolona also signalled that despite a less dovish Fed, the BSP will stay on the same trajectory as before and continue to ease in 2025,” the bank said. — The Inquirer/ANN