Gov Remolona Says If There Is Nov Hike, It Would Likely Be 25bp

Wires run comments from BSP Governor Eli Remolona, who says that the Monetary Board could raise interest rates again at the regular rate review in November, following yesterday's off-cycle hike.

• The official says that a 25bp move is more likely if the Board decides to tighten policy in November, while 50bp would be "a bit of a stretch".
• The Governor adds that he doesn't think that Bangko Sentral ng Pilipinas has been intervening in FX markets recently.
• However, spot USD/PHP has been capped by the round figure of 57.00 over the past two months or so, struggling to break through that level despite several attempts.
• The rate last deals -0.01 at 56.96 as we approach the end of play. 1-month NDF trade -0.08 at 57.02, moving away from yesterday's highs.
• The BSP's off-cycle move has reverberated through the region, with Bank Indonesia refusing to rule out a similar move, even as its likelihood is "very small".