BSP likely to defer rate hike to Q4
MANILA, Philippines – The Australia and New Zealand (ANZ) Banking Group now expects the Bangko Sentral ng Pilipinas (BSP) to raise interest rates in the fourth quarter instead of the third quarter this year as inflation remained well anchored.
In their latest research note, ANZ economists Glenn Maguire and Eugenia Fabon Victorino said inflation is expected to remain within the two to four percent target set by BSP for this year and next year.
“Nevertheless, average inflation should remain within the central bank’s target range. Moreover, the delay in US Federal Reserve’s tightening could give the BSP enough room to push back its own policy tightening to the fourth quarter, in our view,” the investment bank said.
Read full Article here »