Odds of more hefty BSP rate hikes rising on stubborn inflation

Expectations that the Bangko Sentral ng Pilipinas (BSP) will continue to increase its key rates, especially with another large hike of 0.5 percentage point this month, are bolstered with inflation rising for the fifth month in a row and reaching 6.4 percent in July.

BSP Governor Felipe Medalla said high inflation, having risen even further in July, “raises the possibility” that the Monetary Board (MB) might vote for a 0.5 ppt increase instead of 0.25 ppt.

Entertaining questions at a forum hosted by the Federation of Filipino-Chinese Chambers of Commerce and Industry on Aug. 5, Medalla reiterated that the BSP was ready to take steps to shepherd inflation back toward the governme…

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