Menu

Search

  |   Commentary

Menu

  |   Commentary

Search

BSP likely to hike key interest rate by 25 bps in December

The Philippine central bank is set to meet tomorrow for its policy decision. According to a DBS Bank research report, the central bank is expected to hike the policy rate by another 25 basis points. This is because of at least two reasons.

Firstly, even if the inflation has eased by more than what market had anticipated, core rate has continued to rise to 5.1 percent from 4.95 percent, suggesting that demand-side drivers continue to be quite strong.

Falling oil prices provide a small window of easing inflationary pressure in addition to the fact that the supply-side contributors will also dissipate next year.

“Inflation would ease from an average 5.2 percent this year to 4.7 percent in 2019, but still stay above BSP upper limit of 4 percent. Secondly, Philippines real rates are still one of the lowest among peers, we think several more rate hikes between December and mid-2019 are warranted to close this gap”, added DBS Bank.

  • ET PRO
  • Market Data

Market-moving news and views, 24 hours a day >

2019-06-24 18:35:21
0m
2019-06-24 17:58:11
0m

June 24 22:45 UTC Released

NZTrade - Exports

Actual

5.81 Bln NZ

Forecast

Previous

5.55 Bln NZ

June 24 22:45 UTC Released

NZTrade Balance YY

Actual

-5.49 Bln NZ

Forecast

Previous

-5.48 Bln NZ

January 31 00:00 UTC 734368734368m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 734368734368m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 746188746188m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 734368734368m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 746188746188m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 734368734368m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 734368734368m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 734368734368m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.