Stock market investors will be bracing for the Bangko Sentral ng Pilipinas’ next policy meeting on Thursday while digesting a steady stream of second quarter corporate earnings.
The chief consideration among these was the recent July inflation report showing inflation cooling for six straight months to 4.7 percent.
HSBC Asean economist Aris Dacanay maintained their expectation that the BSP would keep its policy rate stable at 6.25 percent on Aug. 17. “Although [the second quarter Philippine economic] growth surprised to the downside, we think risks to the inflation and policy rate outlooks are to the upside,” Dacanay said.
“To some extent, growth cooling may also support macroeconomic stability and domestic balance … Although marginally improving, the national saving rate has not normalized to prepandemic levels while investment continues to be robust,” he said. “This imbalance may then require a tight monetary stance to help rein in demand, incentivize saving and bring the domestic economy back to balance,” he added.Your subscription has been successful.
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