The Bangko Sentral ng Pilipinas is expected to leave key policy rates untouched for the rest of the year despite the quickening of inflation in the past two months, according to New York-based GlobalSource Partners.
Former BSP deputy governor Diwa Guinigundo, Philippine country analyst at GlobalSource, said in a report that the central bank’s Monetary Board is likely to maintain its hawkish pause for the rest of the year despite inflation accelerating to 6.1 percent in September from 5.3 percent in August.
Guinigundo said the BSP itself admitted during the latest press conference on monetary policy in September that upside risks continue to be dominant. Despite keeping interest rates steady on Sept. 21, the BSP decided to further raise its inflation forecasts to 5.8 percent for this year and to 3.5 percent for next year.
The major driver last month was rice inflation, which rose by 17.9 percent in September against August’s mere 8.7 percent, reflecting a serious supply problem, failure to import a sufficient volume of rice before the harvest season, profiteering and the reported hoarding of the staple commodity. “Supply shocks may be persistent—and this what we are seeing today. The failure to put in place non-monetary measures lifted the lid, and inflation returned with a vengeance,” he said.
“The point is that the economy continues to grow, and in that respect, monetary policy continues to enjoy some space to sustain its battle against inflation and for the national government to do its share on the supply side. Lest anyone should forget, higher inflation could reduce economic growth,” he said.
What’s keeping Joshua Garcia busy? ‘Unbreak my Heart’ actor shares his simple lifestyle, dream projectDonBelle, celeb couples swear by this body soap that gives them confidence to get close
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Economists expect BSP to hike rates by 25 bpsThe Bangko Sentral ng Pilipinas is expected to resume its tightening cycle by delivering a 25-basis-point hike next month as inflation quickened for the second straight month to hit a five-month high
Read more »
More rural banks taking merger route \u00a0More rural banks are consolidating their operations to boost the financial strength of the industry amid the initiatives of the Bangko Sentral ng Pilipinas to improve the risk management of small bank
Read more »
BSP interest adjustment to depend on latest data — DioknoDefining the News
Read more »
Starpay at ANC ‘Business Roadshow’ANC Business Roadshow recently featured Starpay and the significantly growing e-wallet space. In 2021 Starpay e-wallet was cited by the Bangko Sentral ng Pilipinas, as an outstanding stakeholder for p
Read more »
GIR fell to $98.7 billion in SeptemberGIR declined to $98.7 billion as of end-September 2023 from $99.6 billion in August as the government settled some of its foreign debts, the Bangko Sentral ng Pilipinas said over the weekend.
Read more »