THE BANGKO SENTRAL ng Pilipinas (BSP) is ruling out another jumbo rate hike as it expects the US Federal Reserve to slow the pace of tightening in December.
BSP Governor Felipe M. Medalla said on Tuesday that the policy decision at its Dec. 15 meeting will depend on the latest move by the Fed, which will have its own meeting on Dec. 14-15.
Last week, the BSP increased its benchmark rate by 75 bps to 5% — the highest in nearly 14 years. It has so far hiked rates by 300 bps since May to tame inflation. “What worried us is the last survey of analysts and economists, average inflation forecast is much higher than ours. It’s much higher than 3%. In the case of next year, it is much higher than 4%. That’s alright as long as they believe that it will be between 2% and 4%, possibly closer to 3%, by the second half,” he added.According to the BSP chief, its recent policy adjustments will help prevent lingering supply shocks.
Bank of the Philippine Islands Lead Economist Emilio S. Neri, Jr. said staying in lockstep with the US Federal Reserve is necessary until inflation has been contained.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Rates of T-bills, bonds may rise after BSP move - BusinessWorld OnlineRATES OF GOVERNMENT securities on offer this week could rise after the Bangko Sentral ng Pilipinas (BSP) delivered a jumbo increase on Thursday.
Read more »
City, BSP strengthen digital payment in Davao City through Paleng-QR Ph programThe city government of Davao and the Bangko Sentral ng Pilipinas-Davao (BSP-Davao) are strengthening digital payments in Davao City by launching the Paleng-QR Ph program in Bankerohan Public Market…
Read more »
Pilipinas Conference 2022 – Day 1MSOpinion Pilipinas Conference 2022 – Day 1 “Six months after the people elected President Ferdinand “Bongbong” Marcos Jr. and a new set of leaders into office, people want to see and feel the President’s call, and promise for unity”
Read more »
Marcos’ Partido Federal ng Pilipinas expels Vic Rodriguez"The decision found that no single original PFP official, coming from the party of the President, was recommended by Rodriguez to be appointed to any position in this administration, notwithstanding that he is the Executive Secretary or &39;Little President&39; thru whom all appointments pass thru," the party said. "Hence, the party found no useful purpose to maintain its association with the respondent." Reached for his comment, Rodriguez said, "My loyalty to Partido Federal ng Pilipinas ends where the interest of the 31.6 million Filipinos who believed in us during the campaign, and my loyalty to the Republic of the Philippines begins."
Read more »
Wright shows concern for hurt Ramos, hopes to team up for Gilas Pilipinas in World CupMatthew Wright says it is 'unfortunate' to see fellow Gilas Pilipinas player Dwight Ramos go down with an injury in their Japan B. League encounter.
Read more »