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Fewer BSP rate cuts expected

'Narrower quantum' seen as Federal Reserve signals just 50 basis points of rate reductions

THE Bangko Sentral ng Pilipinas (BSP) is expected to limit interest rate reductions to just two 25-basis point (bps) cuts this year after the US Federal Reserve said that borrowing costs could be reduced by half a percentage point by the end of 2025, a Maybank economist said.

'With US Fed signalling shallower easing this year at 50 bps (vs 100 bps [in] cuts last year), we also expect a narrower quantum of BSP rate cuts this year of 50 bps,' Maybank Investment Banking Group chief economist Suhaimi Ilias told The Manila Times.