Philippines: BSP seen on hold this week – UOB

Economist at UOB Group Lee Sue Ann suggests the BSP could refrain from hiking rates at this week’s monetary policy meeting.

Key Takeaways

We now think that the BSP may have been done with its rate hikes. We revise our year-end RRP rate forecast to 6.25% (from 6.75% previously), implying no more rate adjustments (neither upward nor downward) for the rest of the year.

That said, a swing in the domestic inflation outlook and US Fed rate trajectory will be key wildcards for our BSP rate projection in the near term.