BSP mulls Dec. policy rate hike
Bangko Sentral ng Pilipinas Governor Felipe Medalla said on Tuesday the BSP will likely adjust its policy rates in December to catch up with the US Federal Reserve’s expected 50 basis-point interest rate.
At the sidelines of the FinTech Alliance INDX 2.0 Accelerating the Digital Economy summit, BSP Governor Felipe Medalla told reporters that catching up with the Fed would prevent pressure on and volatility of the Philippine peso.
Medalla added that there would be no more “off-cycle move” the rest of the year, unlike when monetary authorities surprised the market in July by raising the interest rate overnight.
“(The) only thing is that the US will keep racing but no more than 75 (bps). So that will be a lot more, a lot less painful to economic growth in the Philippines,” Medalla said.
Fitch sees adjustment
For its part, Fitch Solutions said it expects the BSP to increase the policy rate by another 50 basis points to 5.50 percent before the year ends to rein in the elevated inflation rate.
“As such, we expect that catching up with the Fed would prevent pressure on and volatility of the Philippine peso,” Fitch Solutions said.
Read more Daily Tribune stories at: https://tribune.net.ph/
Follow us on social media