Philippine Key Interest Rate Has Hit Peak, Finance Chief Says - Bloomberg
Economics
Central Banks
7/11/2023, 5:42 PM
Philippine Policy Rate Has Reached Peak
Lower inflation doesn’t justify higher interest rates: Diokno
Economy likely grew faster in third quarter on higher spending
Benjamin Diokno Photographer: Lisa Marie David/Bloomberg
By Ditas B Lopez
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November 6, 2023 at 10:52 AM GMT+8
Updated on November 6, 2023 at 1:24 PM GMT+8
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The Philippine central bank’s key interest rate is likely to be kept at the current level at the
Diokno said.
“We have reached the highest,” Diokno, who is part of the Bangko Sentral ng Pilipinas’ pol
the decline in inflation, there’s no justification for higher interest rates.”
The central bank raised its benchmark rate to a fresh 16-year high of 6.5% in an out-of-cycl
necessary to bring inflation back to its 2%-4% target.
BSP Governor Eli Remolona said the day after that the central bank may either stand pat o
upcoming data. Last week, central bank estimates showed headline inflation for October in September.
There’s a 60-40 chance of another policy rate hike, said Robert Dan Roces, chief economis
threshold for the key rate is at 6.8% , Roces said it can rise by another 25 basis points, bu
Strong Dollar Keeps Rate Hikes on Table for Asian Central Banks
Diokno said he also expects inflation to have slowed last month and that third-quarter econ
https://www.bloomberg.com/news/articles/2023-11-06/philippine-policy-rate-may-have-peaked-finance-chief-says?sref=RvIqTetw
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Philippine Key Interest Rate Has Hit Peak, Finance Chief Says - Bloomberg
7/11/2023, 5:42 PM
infrastructure during the past quarter should have also supported faster growth, he said, a
The finance chief reiterated that the lower end of the government’s 6%-7% growth goal rem
village and youth council elections held on Oct. 30. The government will release third-quar
(Adds comments from economist in fifth paragraph. A previous version of this story corre
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https://www.bloomberg.com/news/articles/2023-11-06/philippine-policy-rate-may-have-peaked-finance-chief-says?sref=RvIqTetw
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