Citi is optimistic on growth opportunities in the Philippines as it expects the Bangko Sentral ng Pilipinas (BSP) to implement three policy rate cuts this year.
Citi economist for Thailand and the Philippines Nalin Chutchotitham said in a news briefing Thursday the BSP would likely implement 25-basis-point rate cuts in April, August and December.
The BSP’s policy-making Monetary Board, in its February meeting, kept the overnight borrowing rate unchanged at 5.75 percent.
Chutchotitham said while the BSP might delay the rate cuts, there is room for the central bank to ease interest rates given the stable inflation rate.
Citi Research adjusted the Philippines’ 2025 GDP growth forecast from 6.0 percent to 5.9 percent due to the slightly softer momentum coming from 2024.
February inflation fell more sharply than consensus, settling at 2.1 percent, on lower food and energy prices, with core inflation also easing.
Citi sees inflation staying in the lower half of the BSP’s target range of 2 percent to 4 percent for the rest of the year. It also lowered the 2025 and 2026 inflation forecasts to 2.6 percent and 3.2 percent, respectively.
Citi Philippines Markets encourages offshore investors to participate in the Philippines’ growth opportunities and assist local clients who want to expand into global markets.
“Our priority is to connect our foreign corporates with access to the Philippines’ market and to support our local corporates to expand further into global markets, particularly with their corporate FX hedging and risk management needs. We are in this with them for the long haul and we intend to deliver the full range of our expertise and services to our clients and customers,” said Wilmer Bautista, head of Citi Philippines Markets.
Citi Philippines country officer and banking head Paul Favila noted that economic prospects in the country remain strong amid a changing global market.
“As the world’s most global bank, Citi is in a unique position to help clients navigate these geo-political shifts. The Philippines is a key market for Citi, and we are able to leverage our local knowledge and longstanding presence in the country with our global insights to enable clients to grow globally,” Favila said.