Philippines urged to brace for impact of global inflation, Fed hikes

A customer buys vegetables at a market in Manila. A February 2022 World Bank report warns of the impace of global inflation. - AFP

MANILA (Philippine Daily Inquirer/Asia News Network): Philippine monetary authorities must brace for higher global inflation and the US Federal Reserve’s rate hikes coming soon and fast, but economists watching the country have varied forecasts when domestic interest rates would follow suit.

In a report last week, the World Bank’s Philippine office said that while local inflation already settled within the government’s 2 to 4 percent target range, “rising US inflation and forthcoming monetary policy tightening are developments for policymakers to watch out for.”