The Philippine central bank is set to meet tomorrow for its monetary policy decision. As the Philippine headline inflation has eased and is expected to further ease in 2019, along with more dovish Fed tone, the BSP is expected to keep the rate on hold at 4.75 pct, according to a DBS Bank research report.
Meanwhile, the GDP growth had come below market expectation, growing 6.1 percent year-on-year resulting in an annual number of 6.2 percent. The growth is expected to pick up slightly in 2019 as lower inflation is likely to underpin consumption.
“However, delay in 2019 budget approval could be an important risk factor for investment and consumption. In fact, we think, assuming inflation decelerate further, BSP could turn towards expansionary stance should growth disappoint”, added DBS Bank.
