Analysts anticipate the central bank rate cuts to continue both in the United States and the Philippines, which means interest rates from bank products, such as US dollar time deposits, could go back to pre-pandemic levels where it was only less than 1%.
Meanwhile, Bangko Sentral ng Pilipinas (BSP) has already reduced the interest rates by another 25 basis points in October, with the next expected cut in December 2024 due to the favorable global and local inflation rates.
With interest rates decreasing at a steady pace, guaranteed returns are also expected to go down in parallel.