ANZ: BSP’s inflation fight threatens growth outlook

Bangko Sentral ng Pilipinas

MANILA, Philippines – The Bangko Sentral ng Pilipinas’ (BSP) campaign to tame inflation through higher interest rates is likely to exact a further toll on economic growth, according to ANZ Research, which warned that the Philippines remains among the region’s more vulnerable economies despite a brighter outlook for much of Asia.

In a quarterly report released on Tuesday, ANZ said it had become more optimistic about the region as a technology-driven investment cycle offsets the economic drag from the war in the Middle East. But it struck a more cautious tone on the Philippines and Indonesia, citing weak growth prospects and fragile external positions.

READ: BSP hikes policy rate anew by 25bps to 4.75%

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