No more BSP rate hikes til 2019 — First Metro
The nearly two percent increase in interest rates should be enough for now.
First Metro Investments Corp. (FMIC) said the central bank won’t be budging anytime soon after five straight hikes introduced this 2018.
They are picking up the cue from the slowing inflation trend, which was what they were waiting for all along.
“With the peaking of inflation in September-October, we think the MB’s latest policy rate hike of 25 bps on November 15 will be the last until next year, even if the Fed continues its hiking cycle,” FMIC said.
The Bangko Sentral ng Pilipinas has hiked by a total of 175 basis points since May, bringing rates higher to 4.25-5.25 percent compared to 2.5-3.5 percent previously.