BSP: Rate hike ‘on table’
Market watchers expect the central bank to tighten monetary policy settings for the first time in over three years in its upcoming meetings in 2018, with some betting an interest rate hike will come as early as March. File photo
MANILA, Philippines — The Bangko Sentral ng Pilipinas won’t think twice to pull the trigger and lift rates should inflation sustains its uptrend, Governor Nestor Espenilla Jr. said.
In a report by Bloomberg TV Philippines on Tuesday, Espenilla said monetary policy tightening "remain[s] on the table."
But the central bank chief assured the public that policy decisions are data-dependent, adding that “it is not evident yet that we’re there” where policy rates must be raised.
The BSP earlier vowed to take "timely action" after inflation exceeded forecasts and spiked at the fastest clip in more than three years last January amid building price pressures following the enactment of a new tax law.
At its first policy-setting meeting this year, the BSP Monetary Board held benchmark rates steady but penciled in a faster average inflation for 2018 that will breach the central bank’s target.
Nonetheless, it expects consumer prices to return to its comfort range in 2019, although at quicker pace than its previous estimate.
Market watchers expect the central bank to tighten monetary policy settings for the first time in over three years in its upcoming meetings in 2018, with some betting an interest rate hike will come as early as March.
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