High food prices ‘could put a lid’ on BSP’s rate cut plan

MONETARY authorities could shelve a plan to cut key interest rates next month given the likely impact of a recent typhoon and still-high rice prices, ING Manila Bank said.

“So far, the cut in rice tariffs in early July seems to have had no discernible impact on Philippine retail rice prices, and the recent typhoons may push other seasonal food prices higher in the meantime, so we may need to wait to see the impact of lower tariffs on food prices and inflation more generally,” ING Manila said in a commentary.