4.5% full-year inflation could force BSP to hike rates earli

4.5% full-year inflation could force BSP to hike rates earlier — BPI – Manila Bulletin


Published July 8, 2021, 7:00 AM
A high inflation rate of 4.5 percent in 2021 will likely convince the Bangko Sentral ng Pilipinas (BSP) to adjust policy rates earlier to avoid hits on the country’s reserves and to preserve the country’s positive credit rating, according to Ayala-led Bank of the Philippine Islands (BPI).
MB file
“The Philippines has managed to keep its credit rating despite the huge contraction last year. One of the metrics that have protected the country from a downgrade is the GIR (gross international reserves) to FX (foreign exchange) debt ratio,” noted the bank’s latest BPI Economic Insights (BPI Global Markets Economic and Financial Markets Research).

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