Philippine Finance Minister Sees No Reason for Further Interest Rate Hikes As Inflation Eases

05/14 21:30

Philippine Finance Secretary Benjamin Diokno has stated that the country's central bank has no reason to increase interest rates further as domestic inflation is easing. Diokno expressed his opinion against a rate hike, but acknowledged that he is only one of seven monetary board members who will vote during Thursday's decision-making. The Bangko Sentral ng Pilipinas (BSP) has raised rates by a total of 425 basis points since May last year to fight inflation. While some economists believe the inflation downtrend and cooling economic growth have built the case for the BSP to pause in its tightening cycle, the International Monetary Fund has stated that a continued tightening bias may be appropriate until inflation falls decisively within the 2-4% target range.
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