50-Basis Point Increase in Filipino Overnight Reverse Repo Central Bank Rate
September 27, 2018
The Monetary Board at Bangko Sentral ng Pilipinas raised its key interest rate at a fourth straight scheduled monthly meeting and did so in the face of mounting inflationary risk that has persuaded officials to envisage a higher inflationary path going immediately forward. According to a released statement, today’s 50-basis point rate hike and 100 basis points of incremental restraint administered in May-August
was warranted by persistent signs of sustained and broadening price pressures. Latest baseline forecasts have shifted higher for both 2018 and 2019, with risks to the outlook still leaning toward the upside. With supply-side forces expected to continue to drive inflation in the coming months, inflation expectations have remained elevated amid indications of second-round effects. Meanwhile, domestic demand conditions have generally held firm, even as the previous monetary policy responses continue to work their way through the economy.
Copyright 2018, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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