{"id":183311,"date":"2018-09-27T23:03:54","date_gmt":"2018-09-28T03:03:54","guid":{"rendered":"https:\/\/canadianinquirer.net\/v1\/?p=183311"},"modified":"2018-09-27T23:03:54","modified_gmt":"2018-09-28T03:03:54","slug":"another-rate-hike-seen-december","status":"publish","type":"post","link":"https:\/\/canadianinquirer.net\/v1\/2018\/09\/27\/another-rate-hike-seen-december\/","title":{"rendered":"Another rate hike seen in December"},"content":{"rendered":"
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The BSP on Thursday announced another 50 basis points increase in its key rates on \u201cpersistent signs of sustained and broadening price pressures.\u201d (File Photo<\/a>: Bangko Sentral ng Pilipinas\/Facebook<\/a>)<\/figcaption><\/figure>\n

MANILA<\/strong>\u00a0— Some economists project one more increase in the Bangko Sentral ng Pilipinas\u2019 (BSP) key rates before yearend, even after it has already raised them by a total of 150 basis points in 2018.<\/p>\n

The BSP on Thursday announced another 50 basis points increase in its key rates on \u201cpersistent signs of sustained and broadening price pressures.\u201d<\/p>\n

This hike was made six weeks only after the policy-making Monetary Board (MB) made its last upward adjustment.<\/p>\n

In a research note issued after the BSP rate increase announcement, ING Bank Manila senior economist Joey Cuyegkeng forecasts a 25-basis points hike in December \u201cas inflation expectation remains elevated going into 2019.\u201d<\/p>\n

The December rate setting meet is the MB\u2019s eighth for the year. After this month\u2019s rate setting meet, the next one is scheduled on November 15.<\/p>\n

On the same day, the Board also hiked the BSP\u2019s average inflation forecast for the 2018-2019 period.<\/p>\n

The 2018 average inflation forecast was revised up to 5.2 percent from 4.9 percent last August and the 2019 figure to 4.3 percent from 3.7 percent.<\/p>\n

The upward revision of the forecasts was prompted by the higher-than-expected outturn last August, continued supply-side factors, rise of oil prices in the international market, and impact on Typhoon Ompong on agricultural products.<\/p>\n

However, the forecast for 2020 remains at 3.2 percent.<\/p>\n

With inflation seen to remain elevated but to go back to the two to four percent target band, Cuyegkeng said \u201cit will be imperative for non-monetary policy measures to help alleviate prices pressures as we approach the all-important Christmas season, a crucial turning point ahead of the mid-term election in May.\u201d<\/p>\n

Discounting any natural and man-made calamities, he forecasts inflation to go back to within levels in the second half of 2019.<\/p>\n

Meantime, ANZ Research also project a 25 basis points increase in the BSP\u2019s key rates in December after monetary officials increased average inflation forecast for this and next year.<\/p>\n

In a research note, it explained that \u201cthe revised forecast underscores that inflation will now remain above four percent even in 2019.\u201d<\/p>\n

\u201cThe upside risks to inflation, especially from the impact of the recent typhoon, highlight that further tightening is on the table,\u201d it said.<\/p>\n

\u201cAccordingly, we continue to expect the BSP to raise its key policy rate by another 25 bps to 4.75 percent in December 2018,\u201d it added.<\/p>\n","protected":false},"excerpt":{"rendered":"

MANILA\u00a0— Some economists project one more increase in the Bangko Sentral ng Pilipinas\u2019 (BSP) key rates before yearend, even after …<\/p>\n","protected":false},"author":33,"featured_media":84235,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[],"class_list":["post-183311","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","mauthors-joann-villanueva","mauthors-philippine-news-agency"],"_links":{"self":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/183311","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=183311"}],"version-history":[{"count":0,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/183311\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media\/84235"}],"wp:attachment":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media?parent=183311"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/categories?post=183311"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/tags?post=183311"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}