Fitch: BSP to keep rates until H2 2022

Fitch Solutions forecasts that the Bangko Sentral ng Pilipinas (BSP) will maintain its current monetary policy, including a record-low overnight reverse repurchase rate at 2 percent, until the second half of 2022.

The research arm expects inflation to fall back within the BSP's target range over the coming quarters as temporary factors fade and supply chain disruptions ease due to rising vaccination rates.

Headline inflation remained steady at 4.5 percent year-on-year in May but is expected to moderate as food price pressures from African swine fever subside.