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Inflation is likely to peak near seven percent in October if global price pressures from oil, energy and food remain substantial, according to the Bank of the Philippine Islands.

The Bangko Sentral ng Pilipinas hiked its key policy rate again on Thursday in a bid to arrest red-hot inflation dampening the economy’s recovery efforts. 

More banks are slashing their gross domestic product growth forecast for the Philippines after a disappointing second quarter outturn, as well as the expected further slowdown in the second half due to soaring inflation and tighter monetary conditions.

Most economists expect the Bangko Sentral ng Pilipinas to deliver another 50-basis-point rate hike on Thursday, as monetary authorities remain committed to steer inflation back to the government’s two to four percent target range.

Economists expect the Bangko Sentral ng Pilipinas to extend the tightening cycle by hiking interest rates until next year to address soaring inflation.