Philippines central bank poised to raise rates once again

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MANILA (Philippine Daily Inquirer/Asia News Network): The Bangko Sentral ng Pilipinas (BSP) is expected to raise its key policy rate by an additional 0.75 percentage point (ppt) to bring it to 5 per cent by the end of this year, as continuing hawkish moves by the US Federal Reserve undermine the Philippine peso, exacerbating domestic inflation woes.

Fitch Solutions in their latest country risk research on the Philippines said the BSP’s less aggressive path on monetary policy tightening is contributing to the sharp drop in the value of the peso against the US dollar, while inflation has yet to reach its peak.