Philippines: BSP seen raising rates further this week – UOB

Economist at UOB Group Lee Sue Ann expects the BSP to hike the policy rate at its event on Thursday.

Key Quotes

“Given that BSP’s primary goal is to achieve a target-consistent inflation path amid an even faster pace of Fed tightening, we stick to the view that BSP will roll up its sleeves to hike again at the two remaining monetary policy meetings this year.”

“We project the overnight reverse repurchase (RRP) rate to be raised by another 50bps in Nov and 25bps in Dec, bringing the RRP rate to 5.00% by year-end. Thereafter, we expect the BSP to press the rate pause button.”