Free Trial

Philippine Central Bank Raises Policy Rate By 25bp

BSP

Bangko Sentral ng Pilipinas raised its key policy rate by 25bp, as expected by all but one economist in a Bloomberg poll.

  • The central bank lowered its inflation outlook. It expects consumer prices to grow +6.0% Y/Y in 2023 (prev. +6.1%) and +2.9% Y/Y in 2024 (prev. +3.1%).
  • The BSP noted that inflation expectations increased slightly in 2023, while risks to the inflation outlook for 2023/24 are tilted to the upside.
  • Governor Medalla noted that the central bank will continue to act in a data-dependent manner, while external developments can also affect the next decision.
  • He flagged potential for a pause in the rate-hike cycle at the next monetary policy meeting.
  • The BSP has now delivered a cumulative 425bp worth of rate hikes since May, which makes it one of the most aggressive central banks in the region.

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.