Philippines Central Bank Likely to Continue Tightening
Dow Jones08-12 16:09
0809 GMT - The Philippines's tepid 2Q GDP growth print will likely support Bangko Sentral ng Pilipinas' move to continue its gradual and measured hiking cycle, HSBC's Aris Dacanay says in a report. Its 2Q print marks the slowest pace of growth since 4Q 2009, barring the pandemic, the senior Asean economist notes. "Hiking in a measured manner would be a good balancing act between supporting growth... and keeping inflation on a tight leash," he says. The BSP raised rates at two consecutive meetings this year, and HSBC expects another increase of 25 bps to 5.00% later this month. HSBC's base case is for the policy rate to reach 5.50% by end-2026.
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