Philippines' Central Bank Interest Rate Decision
Close call between cut and hold
Inflation quickens
The Philippine central bank's interest-rate decision on Thursday is expected to be a close call between a cut and a hold after inflation quickened to 4.4 percent in July, above the BSP's target range of 2% to 4% percent.
The central bank cut the overnight borrowing rate by 25 basis points to 6.25% on Thursday in a bid to support economic growth.
The Philippines headline inflation or overall inflation increased to 4.4 percent in July 2024 from 3.7 percent in June 2024.
Governor signals weaker chance of rate cut
Philippine central bank Governor Eli Remolona signaled a weaker chance for a rate cut next week after July inflation breached target and hit a nine-year high.
Remolona said that the BSP will "carefully assess incoming data" and that they are "prepared to take further policy actions as necessary to bring inflation back to within target."
Conclusion
The Philippine central bank's decision on Thursday will be closely watched by markets, as it will provide further insight into the central bank's stance on monetary policy and the country's economic outlook.
Comments