Monetary Easing On The Cards

Annual consumer price growth decelerated for a second consecutive month in October, to 11.2% y-o-y from a revised 11.8% in September, underscoring our view that inflation has now reached a peak in the Philippines. The central bank next meets on November 20, and given the inflationary dynamics currently being seen in the Philippines, we suggest that it may well opt for a 25bps cut in its benchmark overnight borrowing and lending rates, to 5.75% and 7.75%, respectively.

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