{"id":151972,"date":"2018-02-09T22:12:25","date_gmt":"2018-02-10T03:12:25","guid":{"rendered":"https:\/\/canadianinquirer.net\/v1\/?p=151972"},"modified":"2018-02-09T22:12:25","modified_gmt":"2018-02-10T03:12:25","slug":"bsp-rate-hike-seen-to-address-inflationary-pressures","status":"publish","type":"post","link":"https:\/\/canadianinquirer.net\/v1\/2018\/02\/09\/bsp-rate-hike-seen-to-address-inflationary-pressures\/","title":{"rendered":"BSP rate hike seen to address inflationary pressures"},"content":{"rendered":"
\"ANZ<\/a>
ANZ Research expects the adjustment in the Bangko Sentral ng Pilipinas\u2019 (BSP) key rates can address inflationary pressures this year, further boosted by the country\u2019s strong domestic demand. (Photo<\/a>: Bangko Sentral ng Pilipinas\/Facebook<\/a>)<\/figcaption><\/figure>\n

MANILA — ANZ Research expects the adjustment in the Bangko Sentral ng Pilipinas\u2019 (BSP) key rates can address inflationary pressures this year, further boosted by the country\u2019s strong domestic demand.<\/p>\n

In a research note dated February 8, ANZ Research said results of a survey among several economists showed an average inflation forecast for this year of 4.34 percent and 3.49 percent for 2019.<\/p>\n

These levels are higher than the previous forecasts which were at 3.4 percent and 3.2 percent for 2018 and 2019, respectively, it said.<\/p>\n

\u201cThis points to an overshoot from the central bank\u2019s 2 to 4 percent inflation target for 2018. If realized, it would be the first overshoot since 2008,\u201d it said.<\/p>\n

Last January, the country\u2019s inflation rate rose to 4 percent from 3.3 percent in December 2017.<\/p>\n

While Philippine monetary officials maintain they expect the impact of the tax reform program to be transitory but are watchful for second round effects, ANZ Research said price pressures build-up started even before the first package of tax reform was implemented starting January 1.<\/p>\n

Second round effects refer to upticks in prices as a result of an increase in excise taxes on fuel, among others, with the implementation of Tax Reform for Acceleration and Inclusion (TRAIN) law.<\/p>\n

\u201cThe recent surge in core inflation validates a broad rise in consumer prices. We expect the entrenched strength in domestic demand to keep inflation pressures strong, as opposed to the central bank\u2019s stance that the price drivers are temporary,\u201d it said.<\/p>\n

Thus, ANZ Research forecasts the central bank\u2019s policy-making Monetary Board (MB) to start hiking key rates by 25 basis points in March.<\/p>\n

\u201cFor now, we expect cumulative hikes of 50 bps in March and May. However, there is a risk of a longer tightening cycle if inflation continues its ascent,\u201d it added.<\/p>\n","protected":false},"excerpt":{"rendered":"

MANILA — ANZ Research expects the adjustment in the Bangko Sentral ng Pilipinas\u2019 (BSP) key rates can address inflationary pressures …<\/p>\n","protected":false},"author":33,"featured_media":151973,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[1216,46227],"class_list":["post-151972","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-bangko-sentral-ng-pilipinas","tag-inflationary-pressures","mauthors-philippine-news-agency"],"_links":{"self":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/151972","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/comments?post=151972"}],"version-history":[{"count":0,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/151972\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media\/151973"}],"wp:attachment":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media?parent=151972"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/categories?post=151972"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/tags?post=151972"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}