Lee Sue Ann, Economist at UOB Group, sees the BSP raising its policy rate by 25 bps at its meeting on February 16.

Key Takeaways

“We think that the slower-than-expected headline inflation outturn in Dec is less likely to throw BSP off its rate-hike path. But, the softer inflation reading coupled with gloomier global growth prospects will allow BSP to continuously embark on a slower rate hike path in the coming months.”

“We are thus sticking to our BSP call for two more 25bps hikes in 1Q23 before taking a pause at 6.00% thereafter.”