THE BANGKO SENTRAL ng Pilipinas (BSP) is widely expected to raise benchmark interest rates at its meeting on Thursday, with some analysts forecasting a 50-basis-point increase after inflation accelerated to a fresh 14-year high in January. Full story:
A vendor sells floral bouquets with onions, garlic and pepper ahead of Valentine’s Day. Prices of onions and other food products have surged in recent weeks, driving inflation to a fresh 14-year high in January. — PHILIPPINE STAR/EDD GUMBAN
The consumer price index climbed 8.7% year on year in January from 8.1% in December. This was the fastest growth in 14 years or since the 9.1% logged in November 2008. He noted the BSP should take a proactive stance “in controlling inflation and anchoring inflation expectations to prevent the economy from spiraling out of control.”
If rates are hiked by 50 bps on Thursday, he noted the BSP “will disengage from the Fed and raise the risk of a terminal rate exceeding 6% especially if faster disinflation in succeeding months is nowhere to be seen.” Starting February, Ms. Velasquez said the BSP is expected to slow tightening as the full impact of last year’s rate hikes have yet to be felt.“This backdrop clearly points to an extended rate hike cycle that now threatens to extend into second quarter of 2023. Our revised policy rate forecast for 2023 signals two more hikes of 25 bps each at the March and May meetings, taking the terminal rate to 6.50%,” she said.
Miguel Chanco, chief emerging Asia economist at Pantheon Macroeconomics, said the BSP is dealing with inflation that is mainly driven by supply shortages, in which rate hikes are unlikely to help directly.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Stocks may move sideways ahead of BSP meet - BusinessWorld OnlinePHILIPPINE STOCKS may move sideways this week on cautious trading as investors await the Bangko Sentral ng Pilipinas’ (BSP) policy decision on Thursday and the release of more firms’ financial reports. The benchmark Philippine Stock Exchange index (PSEi) went up by 34 points or 0.49% to close at 6,876.79 on Friday, while the broader all […]
Read more »
Peso may drop vs dollar ahead of BSP policy review - BusinessWorld OnlineTHE PESO may weaken against the dollar this week as the market expects a big rate hike from the Bangko Sentral ng Pilipinas (BSP) after headline inflation surged in January. The local unit closed at P54.42 per dollar on Friday, strengthening by three centavos from its P54.45 finish on Thursday, data from the Bankers Association […]
Read more »
BSP letter confirms Soleil Bank affiliate disowned guarantee for POGO auditor | Butch FernandezTHE central bank has alerted a Senate panel that a certification presented by the third-party auditor that is now subject of an internal review by the Philippine Amusement and Gaming Corp. (Pagcor) has been disowned by the issuing bank, prompting Sen. Sherwin Gatchalian to label it as outright “spurious,” possibly…
Read more »
BSP orders closure of rural bank in ZambalesThe Monetary Board ordered Rural Bank of San Marcelino in Zambales to stop doing business and be placed under liquidation, the second bank to receive such an order so far this year. | RonWDomingoINQ /PDI
Read more »
EU eyes push for fossil fuel phasedown ahead of COP28 — draft document - BusinessWorld OnlineBRUSSELS — European Union countries may seek support for an agreement to phase down fossil fuels ahead of this year’s United Nations (UN) climate change talks, according to officials and a draft document seen by Reuters. While last year’s COP27 summit deal included a hard-fought fund for countries harmed by climate change, the deal left […]
Read more »
Manila may juggle China, US, Japan amid tensions - BusinessWorld OnlineThe Philippine government would probably juggle its relationships with China, the United States and Japan to boost its security and economic interests, according to a foreign policy analyst. READ:
Read more »