CLSA: BSP may raise rates by up to 75bps this year

Senior economist Anthony Nafte from CLSA predicts that the Bangko Sentral ng Pilipinas (BSP) may raise interest rates by up to 75 basis points this year due to rising global oil prices and inflation risks caused by the Russia-Ukraine crisis.

Nafte expects a spike in Philippine inflation, potentially reaching between 5.5% and 6%, which is double the current rate of 3%. This volatility makes the Philippines more susceptible to interest rate hikes compared to other ASEAN countries.

Analysts suggest that the BSP may start raising its benchmark rates before mid-2022 to address these inflation risks.