August 2022 Updates: Further policy tightening expected
Higher inflation prints, along with the recently released GDP data as well as expectations of further BSP rate hikes, called for the revision of Metrobank’s macroeconomic forecasts.
With the July 2022 inflation rate of 6.4%, the highest since October 2018, higher inflation expectations are prompting further tightening of policy rates as signaled by the Bangko Sentral ng Pilipinas (BSP) in their recent statements.
Considering further rate hikes on the horizon to support the peso and given heightened inflation expectations, along with the recently released 7.4% GDP growth for the second quarter, we have revised our forecasts:
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