More rate cuts seen as inflation eases

THE BANGKO SENTRAL ng Pilipinas (BSP) yesterday signalled more interest rate cuts, saying inflation having slowed to a 10-month low in January gave it scope to support growth that this year is expected to hit its slowest pace since 2001.

Economists said the January inflation results were expected, while analysts said they expect a further reduction in interest rates of as much as one percentage point as oil and commodity prices continued to fall on declining demand.

Annual inflation in January eased to 7.1%, the lowest since 6.4% last March, the National Statistics Office yesterday announced. Core inflation, which strips out some volatile food and fuel items, came in at 6.9%, the slowest since 6.3% in July and the second straight month of deceleration.

Source