Philippines BSP unlikely to ease policy conditions

Low inflation will not necessarily lead BSP to ease policy conditions. With growth activity levels stable, the BSP is comfortable with the policy stance. 

"While recent comments from the central bank indicate a calibrated approach to lower inflation prints, it can be sensed that currency stability and an expected rate hike by the Fed will keep rates stable for the time being", says Barclays. 

Outside risks of easing are seen in the reserve requirement ratio for banks, if liquidity conditions deteriorate due to capital outflows on the back of potential US rate hikes.