Manila Bulletin
BSP 'shift' inflation expectations likely
The Bangko Sentral ng Pilipinas (BSP) is closely monitoring inflation risks stemming from the Russia-Ukraine conflict, which has led to increased global crude oil prices.
BSP Governor Benjamin Diokno stated that the central bank is constantly updating inflation nowcasts to pinpoint risks to growth and emerging second-round price pressures that will derail inflation expectations.
The BSP remains vigilant against possible second-round effects from supply-side pressures or any shifts in inflationary expectations.
He reiterated the central bank's continued support of the government's non-monetary interventions to help mitigate the impact of higher oil prices and avoid the broadening of price pressures.
Market observers expect the BSP to start raising policy rates by the second quarter this year, with a consensus of at least a 25 basis points (bps) hike this year and a bigger 50 bps rate hike in 2023.
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An economist advises the Bangko Sentral ng Pilipinas (BSP) to increase its benchmark interest rate in the second quarter to combat rising inflation, driven by soaring global oil prices due to the Russia-Ukraine conflict.
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The Philippine peso weakened past P52 to a dollar, its lowest point since 2019, due to escalating global oil prices amid the Russia-Ukraine conflict.
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The Bangko Sentral ng Pilipinas (BSP) projects that the inflation rate for February will rise to 3.2%, driven primarily by increases in the prices of oil, rice, and certain meat products.
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The Bangko Sentral ng Pilipinas (BSP) supports the national government's fiscal interventions to mitigate the economic impact of the Russia-Ukraine conflict.
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Headline inflation remained steady at 3.0 percent in February, unchanged from January's rate, as slower food price increases counteracted rising oil costs.
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