End in sight for BSP rate hikes, says Medalla

Consumer and business borrowers can expect further interest rate hikes from the Bangko Sentral ng Pilipinas (BSP), but the pace of increases is expected to slow the coming months and possibly end in mid-2023 or make a U-turn toward decreases in the second half of next year.

BSP Governor Felipe Medalla said in an interview with Bloomberg TV that, personally, he is looking at a 0.5-percentage-point (ppts) hike in the policy rate this month and several more increases of 0.25 ppts in the succeeding meetings of the Monetary Board (MB).

The MB holds a policy meeting twice in every quarter, once a month except for the first month of each quarter.

Medalla expressed relief that the U…

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