US-Philippines trade negotiations continue, with the possibility of a deadline extension beyond 8th July now aired by both Trump and Bessent. The BSP cut interest rates again in June, having already made a 25bp cut in April. Inflation remains within the target range.
Monetary Policy, Inflation & Interest Rates
As mentioned in a prior report, Bangko Sentral ng Pilipinas (BSP) cut the policy rate by 25bp to 5.50% on 10th April. This month (June), the BSP cut the rate further to 5.25%. Further cuts are forecast into 2026, aiming for 4.75% into 2027. Inflation sits at 2.3% average within the BSP’s target range of 2-4%, but current forecasts are 3.3-3.7% in 2026.
Tariffs
On Wednesday 11th June President Trump said he would be willing to extend the 8th July deadline for trade talks with various countries before the higher, initial tariff rates set prior to negotiations were fully implemented, although he did suggest that this might not be necessary as he expected trade deals to be ...
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