Policy Rate Updates: Forecast shifts higher
by Metrobank Research
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The Bangko Sentral ng Pilipinas (BSP) delivered an off-cycle hike, raising its target overnight reverse repurchase (RRP) rate by 25 basis points (bps) to 6.50%, effective October 27, 2023.
We have revised our 2024 target RRP forecast to 6.00% from 5.50%, given the BSP’s hawkish stance and its “tighter for longer” view. This translates to only two 25-bp cuts next year, from 6.50% currently.
You can read our full report below for more details about our outlook.