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BSP Ready To Raise Policy Rate By 50Bps By August

PHILIPPINES
  • BSP governor Medalla told reporters that the central bank is ready for more aggressive hikes if CPI is too high.
  • CPI inflation has been surging in SE Asia since the start of the year, with Philippines inflation currently standing at 6.1%, above the 4% upper tolerance band.
  • As a result, BSP has started to tighten its policy in March (like many SE central banks this year), hiking the policy rate twice to 2.50% (25bps hikes).
  • Next meeting is August 18; Medalla mentioned that the BSP was ready to proceed with a 50bps hike at the next meeting to counter the inflationary pressures.

Source: Bloomberg/MNI

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