<ul><li>Analysts believe the Bangko Sentral ng Pilipinas (BSP) can further reduce interest rates due to below-target inflation and weak economic growth.</li><li>Inflation in May hit an over five-year low of 1.3%, below the BSP's target band of 2-4%.</li><li>Nomura forecasts headline inflation to average 1.8% in 2025, supporting the case for additional rate cuts by the BSP.</li><li>Despite favorable conditions, caution is advised due to risks such as a shift in US monetary policy and potential inflationary pressures from proposed wage hikes.</li></ul>

Below-target inflation supports case for another rate cut, analysts say

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