BANK of the Philippine Islands (BPI) chief economist Jun Neri revealed that the Bangko Sentral is not likely to cut interest rates until the second half of 2024.

Neri noted that this is due to the fact rice prices remain high abroad as it may impact inflation.

"While we will see inflation fall to 3 percent, likely 3 percent or possibly even lower in the first quarter, the base effects will disappear in the second quarter," he said.

During the first quarter of 2023, inflation had peaked meaning the year-on-year inflation rate in the same period in 2024 may be lower due to the high base this year.

Rice prices remain as a big concern for the public

"Just looking at the chart of Vietnam and Thailand, and they’re [rice prices] both up more (than) 40 percent year on year, and it’s like an 11-year high for global rice prices," Neri said.

"So if we are forced to import in the second quarter of next year, (or) early next year then that could mean a rebound in inflation in the second quarter," he added.

But according to Nerithe BSP can cut rates shortly after the Fed does.

"I think it’s a little bit complicated to be cutting ahead of them," he said.