, Philippines

Philippines' inflation dropped to 12-month low of 2.6%

Will rate cuts come next?

According to BBVA, Philippines inflation fell to a 12-month low of 2.6% y/y (consensus: 2.9%) in April, down from 3.2% in March. The central bank has kept rates unchanged at 3.5% since October.

"Despite the lower-than-expected inflation outturn, we do not anticipate additional rate cuts given the strong growth momentum and risks of overheating," BBVA said.

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