Inflation & Prices

Stubborn Philippine Inflation Fuels Higher for Longer Rate Bets

  • BSP’s terminal rate forecast at 6.25% versus 6% prior: survey
  • Analysts surveyed see a risk for a longer tightening cycle
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Philippine inflation at a fresh 14-year high has prompted bets that the central bank will extend its monetary tightening and hit a higher-than-initially expected peak policy rate.

Bangko Sentral ng Pilipinas will raise borrowing costs by another 75 basis points in the coming meetings, according to a median forecast in the latest Bloomberg survey. That compares with a half-point estimate in a January survey.