BSP To Slowdown Inflation With Tightening Policy

The Bangko Sentral ng Pilipinas (BSP) said that more interest rate hikes are likely to happen in 2023 due to rising inflation. 

BSP Governor Felip Medalla said the central bank flagged rate increases in its first two meetings of 2023 and further policy tightening for next year.

“Our goal is to have inflation between 2-4%, preferably closer to 3% by the third quarter of next year,” Medalla said, adding inflation will likely peak in December after it reached 8% in November.

BSP raised rates by a total of 300 basis points in 2022 to slow down inflation and maintain the interest rate gap between the Philippines and the United States.

Medalla said that the central bank will likely opt for smaller rate adjustments every six weeks next year.

Source: Inquirer.net