Live Breaking News & Updates on He Unit Of Fitch Group Said Acceleration Domestic Inflation Rate Is The Key Factor For Projected Hikes This Year

MANILA - Fitch Solutions Country Risk and Industry Research forecasts the Bangko Sentral ng Pilipinas (BSP) to deliver more aggressive rate hikes, eyeing the key rates to be at 3.25 percent by end-2022 from 2.75 percent previously. In a report released on Monday, the unit of Fitch Group said acceleration of domestic inflation rate is the key factor for the projected rate hikes this year, which it noted is a move that is provided flexibility by the continued recovery of the domestic economy. "The ongoing robust economic recovery will provide room for the BSP to tighten its monetary policy further to curb inflation and safeguard external stability," it said. The BSP's key rates have been increased by 50 basis points so far this year, 25 basis points each last May and this month. To date, the central bank's overnight reverse repurchase (RRP) rate is at 2.5 percent. This, as the rate of price increases rose further to over three-year high of 5.4 percent last May after it ....

Bangko Sentral , Fitch Solutions , Industry Research , Fitch Group , Fitch Solutions Country Risk , Solutions Country Risk , Monetary Board , Manila Fitch Solutions Country Risk And Industry Research Forecasts The Bangko Sentral Ng Pilipinas Bsp To Deliver More Aggressive Rate Hikes , Yeing The Key Rates To Be At 3 25 Percent By End 2022 From 2 75 Previously Ina Report Released On Monday , He Unit Of Fitch Group Said Acceleration Domestic Inflation Rate Is The Key Factor For Projected Hikes This Year , Hich It Noted Isa Move That Is Provided Flexibility By The Continued Recovery Of Domestic Economy Quot Ongoing Robust Economic Will Provide Room For Bsp To Tighten Its Monetary Policy Further Curb Inflation And Safeguard External Stability , Uot It Said The Bsp 39s Key Rates Have Been Increased By 50 Basis Points So Far This Year , 5 Basis Points Each Last May And This Month To Date , He Central Bank 39s Overnight Reverse Repurchase Rrp Rate Is At 2 5 Percent This , S The Rate Of Price Increases Rose Further To Over Three Year High 5 4 Percent Last May After It Surpassed Government 39s 2 Target Band In Previous Month When Climbed 9 Average Inflation First Five Months This Stood At 1 Fitch Solution Revised Up Its Forecast For Philippines From Previously Given Supply Chain Issues And Upticks Global Commodity Prices , S Well As Domestic Supply Issues On Some Food Items During Its Meeting Last Week , Sp 39s Policy Making Monetary Board Mb Hiked The Central Bank Average Inflation Forecast For This Year To 5 Percent From 4 6 , Nd The 2023 Figure To 4 2 Percent From 3 9 It Eyes Inflation Average Within Government 39s Target Band In 2024 At Fitch Solutions Report Said Depreciation Of Peso Against Us Dollar Is Also Contributing Elevated Rate Along With Increased Domestic Demand , S The Government Continues To Open Up Economy It Said Recovery Of Domestic Is Projected Continue After 8 3 Percent Year On Expansion In First Quarter This , Orecasts Growth To Decelerate In The Coming Quarters And For Economy Posta 6 1 Percent Full Year Output Quot Nonetheless , E Acknowledge That The Deceleration Is Mostly Due To Base Effects Anda 6 1 Percent Growth Rate Would Still Mark An Improvement Relative 5 Recorded In 2021 , Uot It Added Pna ,