Philippines: BSP expected to hike rates this week – UOB

Economist at UOB Group Lee Sue Ann expects the Bangko Sentral ng Pilipinas (BSP) to raise the policy rate by 25 bps later in the week.

Key Quotes

“We are maintaining our BSP rate call of two more 25 bps hikes at the next two meetings in May and Jun, before taking a pause at 6.75% in 2H23.”

“That said, we do not rule out the fact that the possibility of a temporary interest rate pause by BSP at this coming meeting has somewhat increased given recent monetary policy decisions made by regional central banks, rising risks of a gloomier global growth outlook, and increasing global financial stress.”