Smarter News Now
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting
No Result
View All Result
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
No Result
View All Result
Smarter News Now
No Result
View All Result
Home Investing News

Next central bank governor signals at least two rate hikes

by
June 7, 2022
in Investing News
0
Next central bank governor signals at least two rate hikes
0
SHARES
14
VIEWS
Share on FacebookShare on Twitter

FELIPE M. MEDALLA / COURTESY OF BANGKO SENTRAL NG PILIPINAS

THE PHILIPPINES will likely follow its interest-rate increase last month with at least two more hikes to curb inflation, according to the central bank’s incoming governor.

“It’s almost a sure thing to everyone that we will raise in June,” Felipe M. Medalla, a board member of the Bangko Sentral ng Pilipinas (BSP) who is set to take over from Benjamin E. Diokno as governor on July 1, said in an interview on Tuesday. There is a “90% chance there’s another one in August. The real question is: Is that the last one?”

He said the successive hikes will lift the benchmark rate to 2.75% from 2.25% now — a level seen reached by the end of third quarter in the median of forecasts compiled by Bloomberg. Increases beyond that will be data-dependent, Mr. Medalla said.

The BSP is scheduled to review policy settings on June 23 and subsequently on Aug. 18.

The peso fell by 0.2% to 52.95 per dollar, approaching the lowest since January 2019. Local stocks rose by 0.5%.

Mr. Medalla will take the helm at BSP as its rate hike cycle picks up speed to ride out the inflation wave sweeping the world. Consumer prices rose an annualized 5.4% in May, data released on Tuesday showed, the fastest in more than three years and well above the bank’s 2%-4% target. 

The governor-designate also said the BSP need not move in lockstep with the US Federal Reserve, saying the nature of inflation in the Philippines is different from what the US is experiencing.

“Even if inflation is purely supply side, we are afraid there may be what we call second-round effects,” Mr. Medalla said in his first sit-down interview since accepting the nomination. Spillover inflation effects may materialize “if supply shocks are so prolonged.”

Second-round inflation has already materialized and the BSP wants to prevent a further buildup, Mr. Diokno said earlier on Tuesday after the latest inflation print. Both the incoming and outgoing BSP chiefs have signaled the need to tighten monetary policy after the lift-off in May. The policy prescription follows a clouded inflation outlook amid continued supply disruptions from Russia’s war in Ukraine that’s in its fourth month.

Philippines has among Southeast Asia’s quickest inflation. The peso slid last week to three-year low, potentially further fanning costs in a country that imports commodities from crude oil to wheat.

“Transmission of peso-dollar rate to inflation is quite low,” Mr. Medalla said, noting that the peso’s performance was better than the middle of the pack. He sees the Philippine economy growing at least 7% this year on the back of rejuvenated consumer spending as it recovers from the pandemic. — Bloomberg

ShareTweetPin

Related Posts

Senate grills Rodriguez on approval procedures for sugar import order
Investing News

Senate grills Rodriguez on approval procedures for sugar import order

August 23, 2022
Trade dep’t expecting sugar price monitoring report by Friday
Investing News

Trade dep’t expecting sugar price monitoring report by Friday

August 23, 2022
Fisherfolk seek halt to reclamation on municipal fisheries
Investing News

Fisherfolk seek halt to reclamation on municipal fisheries

August 23, 2022
Supreme Court rules petitioners have no standing in PDS ‘monopoly’ case
Investing News

Supreme Court rules petitioners have no standing in PDS ‘monopoly’ case

August 23, 2022
ERC signals planned overhaul of regulatory practices via benchmarking exercise with regional counterparts
Investing News

ERC signals planned overhaul of regulatory practices via benchmarking exercise with regional counterparts

August 23, 2022
Malaysian trade official urges PHL to sign up for RCEP  
Investing News

Malaysian trade official urges PHL to sign up for RCEP  

August 23, 2022
Next Post
Marcos gov’t unlikely to suspend fuel tax

Marcos gov’t unlikely to suspend fuel tax

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Email Address *
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!
 

Recommended

‘We’ll be back’ — Norman Black

‘We’ll be back’ — Norman Black

August 8, 2022
US to train local staff vs African Swine Fever

US to train local staff vs African Swine Fever

July 21, 2022
Peso weakens ahead of July inflation report

Peso weakens ahead of July inflation report

August 2, 2022
LA Lakers’ Russell Westbrook exercising $47.1-million option

LA Lakers’ Russell Westbrook exercising $47.1-million option

June 29, 2022
Senate bill filed on scholarship grants to public school teachers, their children 

Senate bill filed on scholarship grants to public school teachers, their children 

August 14, 2022
A 70s Cabinet

A 70s Cabinet

June 8, 2022
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting

Copyright © 2022 SmarterNewsNow.
All Rights Reserved.

Disclaimer: SmarterNewsNow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

No Result
View All Result
  • About Us
  • Contact Us
  • Email Whitelisting
  • Home
  • Privacy Policy
  • Terms & Conditions
  • Thank You

Copyright © 2020 SmarterNewsNow. All Rights Reserved.