By Lawrence Agcaoili | The Philippine Star
September 18, 2023
MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) may keep interest rates steady for a fourth straight rate-setting meeting on Thursday despite the uptick in inflation to 5.3 percent in August after cooling for six straight months, according to economists.
Philippine National Bank economist Alvin Arogo said the BSP is likely to leave the key policy rate untouched for the rest of the year amid the relatively weaker economic growth outlook and the easing of inflation within the central bank’s two to four percent target range by the fourth quarter.
“As a baseline view, we believe that the BSP will decide to leave the key policy rate unchanged during its upcoming meetings in September, November and December,” Arogo said.
However, Arogo said the BSP may need to temporarily sacrifice supporting economic expansion until the peso stabilizes if the local currency continues to substantially weaken due to a more hawkish US Fed.
“As such, a final 25-basis-point hike this year still has a fair chance of happening, whereas a rate cut is very unlikely,” Arogo said.
However, Arogo said the BSP may need to temporarily sacrifice supporting economic expansion until the peso stabilizes if the local currency continues to substantially weaken due to a more hawkish US Fed.
“As such, a final 25-basis-point hike this year still has a fair chance of happening, whereas a rate cut is very unlikely,” Arogo said.
Source: https://www.philstar.com/business/2023/09/18/2296995/bsp-expected-keep-rates-steady