Rate cut more likely as inflation drops

LOWER-THAN-EXPECTED June inflation has raised the likelihood of the Bangko Sentral ng Pilipinas (BSP) cutting key interest rates next month, analysts said.

Consumer price growth slowed to 3.7 percent in June, easing from May's 3.9 percent and below the 3.9 percent median in a Manila Times poll of economists. It ended a four-month rise and bucked earlier expectations of a second-quarter breach of the central bank's 2.0- to 4.0-percent target.