spot_img
28.2 C
Philippines
Tuesday, October 15, 2024

Unicapital predicts 50-bps interest cut this year

Unicapital Group sees a brighter outlook for the Philippine economy in 2024 and 2025, projecting favorable macroeconomic conditions.

The independent financial service provider and investment house anticipates another easing of key policy rates by the Monetary Board in October, bringing the total adjustment to 50 basis points this year.

- Advertisement -

Wendy Estacio-Cruz, Unicapital’s head of research, expects inflation to decline further in the coming months. She believes the country’s inflation rate will likely settle within the government’s target, even if a higher rice tariff is rejected by the court.

Unicapital forecasts a modest GDP growth of 5.8 percent to 6.0 percent in 2024, near the low end of the government’s target. Increased consumer and infrastructure spending, driven by lower interest rates, is expected to support this growth.

The stock market is projected to end the year at 7,000, slightly lower than Unicapital’s previous forecast of 7,200.

The property sector is anticipated to benefit from lower mortgage rates, which will likely lead to increased demand for properties starting in the first quarter of 2025, it said.

Jaime Martinez, president and chief executive of Unicapital Group, expressed confidence in the projections, highlighting the positive implications for the Philippine business sector.

He emphasized the company’s optimism and excitement as the economy moves towards stabilization, recovery and sustained growth.

LATEST NEWS

Popular Articles