Nation | Philstar.com

The increase in loans disbursed by big banks slowed for the fourth straight month in July amid high borrowing costs after a series of aggressive interest rate hikes, according to the Bangko Sentral ng Pilipinas (BSP).

The Bangko Sentral ng Pilipinas has shown bias toward a more restrictive policy and a higher-for-longer approach to interest rates after signaling the resumption of its tightening cycle as early as November amid upside risks to inflation, economists said.

Financial markets tumbled last week after the Federal Reserve’s (Fed) latest policy meeting.

ING Bank cuts below five percent its 2023 economic growth forecast for the Philippines due to the further pickup in inflation as well as the possibility of additional interest rate hikes to be delivered by the Bangko Sentral ng Pilipinas.

Philippine banks vowed to further deepen their collaboration and partnership with the Bangko Sentral ng Pilipinas on cybersecurity, as well as financial literacy and inclusion.