Philippine Central Bank Expected to Deliver Another Rate Rise

Dow Jones
08/27

0304 GMT - Bangko Sentral ng Pilipinas is expected to raise its policy rate by 25 bps to 5.00% later Thursday, DBS senior economist Radhika Rao says in a note. Gov. Eli Remolona recently said the BSP is focused on inflation risks, despite easing consumer prices in recent months and 2Q growth slowing sharply. "Officials would likely prefer to see a more convincing disinflationary trend before drawing a pause," she says. Beyond the forecast rate hike by BSP on Thursday, DBS's baseline forecast is for one more hike within 2026, followed by a prolonged pause.

 

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