Dahua Bank: In the face of slowing growth and subdued CPI, the Central Bank of the Philippines may cut interest rates.

Economists at Dahua Bank wrote in a report that the latest CPI and GDP data in the Philippines indicate that there is room for monetary easing in the country. Overall and core inflation rates in November both cooled down, with the overall inflation rate staying below the Philippine central bank's target of 2%-4% for the ninth consecutive month. Economic growth in the third quarter slowed to the lowest level in over four years. Dahua Bank noted that the Governor of the Philippine central bank, Benjamin Diokno, recently stated that the slowing growth outlook increases the possibility of another interest rate cut at the meeting scheduled for this month. Looking beyond this year, Dahua Bank still expects the Philippine central bank to make one final 25 basis point rate cut in the first quarter to boost domestic growth.