All 25 economists expect rates to remain unchanged at 6.50 on June 27

BENGALURU, June 25 Reuters The Philippine central bank BSP will keep its key policy rate on hold for a sixth consecutive meeting on Thursday, according to all economists polled by Reuters, with the majority expecting the first cut in the last three months of the year.

Inflation inched up to 3.9 in May, close to the upper limit of the BSP39;s 24 target, suggesting the central bank is far from starting an easing cycle despite its view that the cut could come as early as August.

With the Philippine peso being one of the worstperforming emerging currencies this year, having lost nearly 6 against the dollar, the BSP is unlikely to preempt the U.S. Federal Reserve39;s first rate cut, expected in September.

All 25 economists in a June 1824 Reuters poll expected Bangko Sentral ng Pilipinas BSP to keep its overnight borrowing rate unchanged at 6.50 on June 27.

Median forecasts showed the rate on hold after the subsequent meeting in August, followed by a halfpoint cut in the fourth quarter when the BSP convenes twice in October and December.

Inflation is uncomfortably high…, which means it is not time for the BSP to begin monetary policy easing just yet. A delay in the first rate cut by the U.S. Federal Reserve adds to the case the BSP will stand pat in the upcoming meeting, said Sarah Tan, economist at Moody39;s Analytics in Singapore.

Following the Fed39;s path rather closely will help to maintain…