MANILA, Philippines — July’s slower inflation is unlikely to persuade the Bangko Sentral ng Pilipinas to pause its campaign of interest rate increases, as policymakers remain focused on steering price growth back to their target, analysts said.
In a commentary released on Thursday, economists at Nomura Global Markets Research said they still expect the central bank to raise its benchmark rate by another half percentage point, with quarter-point increases anticipated at the policy meetings in August and October.
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“We believe BSP remains concerned about rising core inflation and is highly vigilant of upside risks overall, likely due to a combination of still-high uncertainty in crude oil prices, some impact from higher-than- expected wage hikes and prospects of a strong El Niño,” they said.FEATURED STORIES
