Philippines aims for 7% growth with rate cuts

The Philippine economy is expected to grow by up to 7% this year, according to Finance Secretary Ralph Recto. He believes that cuts in interest rates will boost investment and consumer spending. Recto reassured that the country's political situation is stable, even after the recent arrest of former President Rodrigo Duterte related to his controversial drug policies. In a recent interview, Recto anticipated that the central bank would lower interest rates by 50 to 75 basis points this year, which can positively impact economic growth. He expects the economy to grow by at least 6%. The next meeting of the Bangko Sentral ng Pilipinas (BSP) is scheduled for April 10 and may result in further monetary easing. Inflation has decreased significantly in February and remains within the BSP's target range of 2% to 4%. This gives the central bank the ability to adjust its policies as needed. Additionally, the Philippine peso has gained about 1% against the US dollar this year after hitting a low in December. The government plans to raise 100 billion pesos by selling state assets, including a hydroelectric power plant. Recto mentioned that they have minimal needs left for international funding this year. The Philippines recently sold $3.3 billion in bonds to help cover its budget deficit of 1.54 trillion pesos, which is about 5.3% of its GDP.