Philippines central bank chief judges out one more off-cycle rate action

Philippines central bank chief judges out one more off-cycle rate action

July 27, 2022: -On Tuesday, the Philippine central bank chief ruled out another off-cycle move on monetary policy tightening, which marked a rate hike of below 75 basis points at its August 18 meeting in an ongoing bid to restrain red-hot inflation.

“A thing I can say is you can shock people once, so there will be no more off-cycle,” Bangko Sentral ng Pilipinas (BSP) Governor Felipe Medalla said.

“My guess is you can rule out zero or 75 basis points,” he added while speaking at a forum on President Ferdinand Marcos Jr’s policy agenda and replying to a question on the magnitude of the BSP’s following policy action.

His remarks came ahead of Wednesday’s U.S. Federal Reserve policy decision, with the market pricing in a nearly 90% chance it will hike by 75 bps.

The BSP’s reverse repurchase facility rate is currently at 3.25% following three successive hikes counting 125 bps between May and July, a surprising 75 bps on July 14 that was approved outside the regular schedule for policy reviews.

Medalla stated future policy moves would remain data-driven and reiterated that the economy was able to absorb rate increases.

Philippine inflation, which averaged 4.4% in the first half of the year and topped the full-year 2%-4% target band, is expected to remain elevated, driven by high fuel and food prices.

On Monday, Marcos outlined his economic strategy focusing on financial management, infrastructure upgrades, and agricultural productivity. He pledged to ensure reasonable prices and an adequate domestic supply of essential farm products, which include rice, amid a looming global food crisis.

Finance Secretary Benjamin Diokno, who spoke at a similar forum, said the government did not need to borrow almost it during earlier crises, like at the height of the pandemic.

Editor's Choice

Posts You Might Like

A Resilient & Innovative Leader | Maushum Basu

Maushum Basu is a visionary leader who inspires his team with a clear, compelling purpose. Unafraid to take calculated risks, he understands that growth often stems from change and innovation. His deep commitment to both Airia Brands, Inc.

Directing with Courage & Precision | Martin Paquette

When speaking with Martin Paquette, one thing is immediately apparent: he’s honest. His transparency is refreshing. While many shy away from such vulnerability, Paquette sees it as a force to reckon with. The incredible emotional intelligence speaks to years of looking within—it’s also what allows him to acknowledge his mistakes gracefully and use them as opportunities to innovate.

An Innovative Thinker | Marina Charriere

Marina Charriere, CEO of Star Drug Testing Services, Star Drug Testing Services (Windsor Park), and First Defence Face Masks go hand in hand. Star is a drug and alcohol testing facility, and First D F M is a face mask company.

A Pioneer of Food Technology | Lejjy Gafour

Lejjy Gafour, CEO, CULT Food Science Corp. Lejjy is a self-taught entrepreneur and experienced company operator who made his start creating opportunities at the young age of 14, and he has been working, leading, and building businesses ever since.

The-corporate-magazine-15

Leave us a message

Subscribe

Fill the form our team will contact you

Advertise with us

Fill the form our team will contact you​