Home >> Banking & Finance >> Philippine central bank seen tightening policy for fifth meeting to rein in inflation

imageMANILA: The Philippine central bank is likely to tighten policy for a fifth straight meeting to rein in inflation, a Reuters poll showed, but views are divided on which tools it will use.

Four of the nine analysts expecting a move on Thursday forecast a 25-basis-point hike in the short-term special deposit account (SDA) rate, but no change to the overnight rate, while two see a quarter-point increase in the main overnight rate but no change to the SDA rate. Three expect both rates to be lifted by 25 basis points.

Two of the 11 respondents in the poll expect both the overnight borrowing rate and the SDA rate to be kept steady at 3.75 percent and 2.25 percent, respectively, saying further tightening would likely happen in the fourth quarter.

Bangko Sentral ng Pilipinas Governor Amando Tetangco said on Friday policymakers will consider the pick-up in annual core inflation in August, which climbed to a 17-month high, in reviewing policy settings on Sept. 11.

The central bank raised its policy rate in July – the first in three years, to stay on top of rising prices.

the author

Leave a Reply

Your email address will not be published. Required fields are marked *