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Governor Remolona Suggests February Rate Cut Is Unlikely

BSP

Bloomberg is running comments from Bangko Sentral ng Pilipinas Governor Eli Remolona, who plays down potential for a rate cut at the February meeting as monetary policy settings should remain sufficiently tight and notes that inflation may be lower in January than it was in December.

  • Remolona said that China's growth slowdown is a source of concern, adding that the Philippines should seek to diversify its trade partners. However, the outlook for domestic economy is more optimistic.
  • Deputy Governor Francisco Dakila said that geopolitical risks associated with the situation in the Middle East have been factored into the +4.2% Y/Y CPI target for 2024.

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