Philippine Central Bank May Cut Key Rate if Fed Cuts, Governor Says

The transcript discusses the factors influencing rate hikes, particularly the impact of US rate cuts on Philippine monetary policy. It highlights the strong economic growth in the Philippines and the goal to maintain inflation below 4% by the fourth quarter. The potential risks of currency depreciation and its effect on inflation expectations are also examined. Additionally, the BSB's reduced intervention in the FX market compared to the previous year is noted.

What is one reason the Philippines is hesitant to cut interest rates?

• Weak currency

• Narrow policy rate differential with the US

• High inflation rates

• Strong economic growth

What is the forecasted economic growth rate for the Philippines this year?

• 4%

• 5%

• 6%

• 7%

By when does the Philippines aim to achieve an inflation rate below 4%?

• Third quarter

• Second quarter

• First quarter

• Fourth quarter

What could potentially become the new anchor of inflationary expectations if the peso depreciates too much?

• Interest rates

• Exchange rate changes

• GDP growth

• Wage adjustments

How has the level of BSP's intervention in the FX market changed compared to last year?

• Remained the same

• Decreased significantly

• Increased significantly

• Increased slightly