MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) is among a small group of Asian central banks still maintaining some interest rate differential with the US Federal Reserve (Fed) , as policymakers move to contain inflation and support a weakening currency, Bank of America (BofA) said.
The Philippines, Indonesia and India are the only major Asian economies that have maintained a positive policy-rate differential with the United States, even as the Federal Reserve has narrowed its gap with central banks across the region, BofA said in a note to clients on Wednesday.
READ: Deutsche Bank sees fresh quarter-point BSP rate hike to 5%
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The shift marks a reversal from much of the past 15 years, when Asian emerging-market central banks generally maintained higher policy rates than the Fed. That changed during the Fed’s aggressive rate-hiking cycle in 2022 and 2023, when central banks across Asia largely followed suit to limit pressure on their currencies.FEATURED STORIES
