Lee Sue Ann, Economist at UOB Group, suggests the BSP would continue hiking rates in the next periods.

Key Quotes

“The latest large off-cycle rate hike will not mark the end of the BSP’s monetary policy normalisation as yet. In fact, we see more interest rate rises ahead, depending on the incoming domestic inflation and GDP data as well as global and regional central banks’ rate decision in the near term.”

“We now bring forward our BSP rate hike projections for 1H23 to this year, taking the RRP rate back to the pre-pandemic level of 4.00% by the end of 2022.”