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President Marcos’ decision to reopen the economy proved to be the right step in boosting economic growth, as seen in the better-than-expected 7.6 percent gross domestic product growth for the third quarter, according to analysts.
Inflation may hit up to 9.3 percent in December and remain elevated until the first quarter of next year given high global commodity prices and the lingering impact of recent typhoons, economists said.
The Bangko Sentral ng Pilipinas is raising key policy rates by a huge 75 basis points (bps), matching the aggressive hike delivered by the US Federal Reserve, as a preemptive move to prevent the peso from depreciating further before the scheduled rate-setting meeting of the BSP two weeks from now.
Inflation likely accelerated in September as the peso slumped to record low levels, coupled with higher food prices and more expensive electricity, according to economists.
Economists see more rate hikes for the remainder of the year as the Bangko Sentral ng Pilipinas intensifies efforts to tame soaring inflation and stabilize the peso.