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Philippines’ Key Rate to Rise to 4% This Quarter, Survey Shows

  • Headline inflation forecasts quicker than previous outlook
  • 2023 growth seen to slow to 5.8% from 2022 forecast of 6.8%
The Philippines stands out as among Asia’s fastest-growing economies, with the government expecting at least a 6.5% annual expansion through 2028.

The Philippines stands out as among Asia’s fastest-growing economies, with the government expecting at least a 6.5% annual expansion through 2028.

Photographer: Veejay Villafranca/Bloomberg

The Philippine central bank will sustain its rate-hike cycle this quarter, following a surprise move in July, to quell broadening price pressures, according to Bloomberg survey of economists.

The benchmark interest rate is expected to increase by another 75 basis points to 4% by the end of September, a survey showed. Bangko Sentral ng Pilipinas is seen to pause in October-December, before raising borrowing costs by half-a-point in the first quarter of 2023, based on the latest estimates.