BSP to stay on hold for most of 2015, unless inflation eases significantly or fundamentals deteriorate

BSP will announce their policyrate decisions on 26 March. No easing is expected like other Asian central banks. 

Standard Chartered notes its expectations on BSP's monetary policy as follows....

• we expect BSP to keep the reserve repo rate unchanged at 4.0% and the special deposit account rate unchanged at 2.5%. 
  
  
• Inflation has remained within BSP's 2-4% target this year, and is likely to slow further before rebounding byend-2015. 
  
  
• Food inflation has eased in recent months - to 4.8% in February from 8.3% in August 2014. We think BSP has room to keep rates on hold for most of 2015.
  
  
• We think the central bank will consider cutting policy rates if inflation eases significantly in the coming months and remains below the benign 2% level for more than six months.