Philippines: BSP seen tightening the policy further – UOB

Economist at UOB Group Lee Sue Ann suggests the Bangko Sentral ng Pilipinas is likely to raise the policy rate by 25 bps later in the week.

Key Quotes

“We are expecting BSP to jack up its RRP rate to 6.75% by the middle of this. This is largely on the back of an upward revision (in early Feb) in inflation and a revised timeline for US Fed Funds Target Rate (FFTR) to hit its peak in 2Q23.”

“We currently pencil in 25bps hike for each of the next three meetings in 1H23 (Mar, May and Jun).”