Free Trial

ING: Faster Inflation + Robust GDP = BSP Hike?

PHILIPPINES

ING note that “with faster inflation expected to persist for at least the rest of the year, we expect BSP (Bangko Sentral NG Pilipinas) to join the rate hike club with an adjustment before the end of this quarter. BSP Governor, Benjamin Diokno, has been hesitant to increase policy rates in the past, expressing his preference to retain monetary support for the economic recovery. However, with Q1 GDP growth expected to be robust and confirming that growth momentum is intact, we expect BSP to finally move rates higher. A GDP growth rate of over 6% on top of the above-target inflation rate should be enough to prod BSP to hike rates as early as the 19 May policy meeting.“

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.