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March 05, 2024

BSP expected to continue tightening with possible rate hike in June, says BMI Research

Bangko Sentral ng Pilipinas (BSP) is expected to raise interest rates once more next month, according to BMI Country Risk & Industry Research, a unit of the Fitch group.

BMI sees the recent decision to hold rates as a temporary pause in the current tightening cycle.

Further, it highlights the likelihood of a rate hike in June due to the expected slowdown in disinflation momentum and persistent inflation above the target range.

The BSP’s aim to anchor expectations and mitigate external risks is expected to drive further tightening measures, although the possibility of weather-related disruptions and easing inflation could potentially influence the interest rate outlook.

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