Philippines to Shift to Smaller Hike as It Echoes Fed Price Woes
- BSP is widely seen to increase the key rate by a quarter point
- Focus is on price outlook, comments on global banking turmoil
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The Philippine central bank will likely slow the pace of interest-rate increases Thursday, tracking the Federal Reserve that moved by a quarter-point to tame inflation which it sees as a greater risk than a turmoil in the banking system.
Bangko Sentral ng Pilipinas will probably raise the overnight reverse repurchase rate by 25 basis points to 6.25%, according to all but one of 22 economists in a Bloomberg survey conducted before the Fed’s decision. That will take the cumulative increases to 425 basis points since May, which included four half-point moves and two 75 basis-point actions.