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BSP Governor States November Hike A Good Chance

BSP

Governor Remolona has given a hawkish interview on Bloomberg TV this morning. The Governor noted there is a good chance rates could rise at the next policy meeting (which is on the 16th of November).

  • The Govenor added "We're still in a hawkish stance" and that a hike in November may not be the last in this cycle.
  • This comes after yesterday's on hold rates outcome, which was widely expected. The central bank did revise higher its inflation forecast for this year and for 2024.
  • The broad sell-side consensus is no change in the BSP's policy rate between now and year-end.
  • The next CPI release, due on Oct 5, will be critical for the BSP outlook, as the central bank gauges the extent of supply shocks on inflation.

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