Philippines: BSP expected to hike rates by 25 bps this week – UOB

Lee Sue Ann, Economist at UOB Group, sees the BSP raising its policy rate by 25 bps at its meeting on February 16.

Key Takeaways

“We think that the slower-than-expected headline inflation outturn in Dec is less likely to throw BSP off its rate-hike path. But, the softer inflation reading coupled with gloomier global growth prospects will allow BSP to continuously embark on a slower rate hike path in the coming months.”

“We are thus sticking to our BSP call for two more 25bps hikes in 1Q23 before taking a pause at 6.00% thereafter.”