Despite government assurances of declining inflation and interest rates, businesses expect price increases to keep accelerating and borrowing costs to rise in the third quarter of the year and the next 12 months.
Metrobank Research reaffirms its expectation that the Bangko Sentral ng Pilipinas will begin its rate-cutting cycle in the fourth quarter of this year, aligning with the recent projections from the US Federal Reserve.
Inflation may rise in the next few months before easing in the third quarter, prompting the Bangko Sentral ng Pilipinas to consider unwinding high interest rates before the end of 2024.