MODEL PORTFOLIO
THE GIST
NEWS AND FEATURES
Global Philippines Fine Living
INSIGHTS
INVESTMENT STRATEGY
Economy Stocks Bonds Currencies
THE BASICS
Investment Tips Explainers Retirement
WEBINARS
2024 Mid-Year Economi Briefing, economic growth in the Philippines
2024 Mid-Year Economic Briefing: Navigating the Easing Cycle
June 21, 2024
Investing with Love
Investing with Love: A Mother’s Guide to Putting Money to Work
May 15, 2024
retirement-ss-3
Investor Series: An Introduction to Estate Planning
September 1, 2023
View All Webinars
DOWNLOADS
investment-ss-3
Reports
Policy rate views: Fed expected to do baby steps
DOWNLOAD
economy-ss-9
Economic Updates
Inflation Update: Faster but full-year average within target
DOWNLOAD
948 x 535 px AdobeStock_433552847
Reports
Monthly Economic Update: Waiting on Jay Powell
DOWNLOAD
View all Reports
Metrobank.com.ph How To Sign Up
Follow us on our platforms.

How may we help you?

TOP SEARCHES
  • Where to put my investments
  • Reports about the pandemic and economy
  • Metrobank
  • Webinars
  • Economy
TRENDING ARTICLES
  • Investing for Beginners: Following your PATH
  • On government debt thresholds: How much is too much?
  • Philippines Stock Market Outlook for 2022
  • Deficit spending remains unabated

Login

Access Exclusive Content
Login to Wealth Manager
Visit us at metrobank.com.ph How To Sign Up
Access Exclusive Content Login to Wealth Manager
Search
MODEL PORTFOLIO THE GIST
NEWS AND FEATURES
Global Philippines Fine Living
INSIGHTS
INVESTMENT STRATEGY
Economy Stocks Bonds Currencies
THE BASICS
Investment Tips Explainers Retirement
WEBINARS
2024 Mid-Year Economi Briefing, economic growth in the Philippines
2024 Mid-Year Economic Briefing: Navigating the Easing Cycle
June 21, 2024
Investing with Love
Investing with Love: A Mother’s Guide to Putting Money to Work
May 15, 2024
retirement-ss-3
Investor Series: An Introduction to Estate Planning
September 1, 2023
View All Webinars
DOWNLOADS
investment-ss-3
Reports
Policy rate views: Fed expected to do baby steps
September 18, 2025 DOWNLOAD
economy-ss-9
Economic Updates
Inflation Update: Faster but full-year average within target
September 5, 2025 DOWNLOAD
948 x 535 px AdobeStock_433552847
Reports
Monthly Economic Update: Waiting on Jay Powell
September 2, 2025 DOWNLOAD
View all Reports
Economy 3 MIN READ

Philippines central bank to hike by 50 bps on Thursday

August 16, 2022By Reuters
Related Articles
BRIEF-SPC Power Corp Clarifies On News Article Regarding Penalization By ERC In 2021 February 7, 2022 Oil falls 2% as rate hikes loom and Russian flows stay strong January 30, 2023 BRIEF-Victorias Milling Granted By Energy Regulatory Commission To Operate 40.000 MW Biomass Co-Generation Power Plant March 22, 2022

Aug 16 (Reuters) – The Philippine central bank will follow its surprise July rate hike with a half-point point rise on Thursday and another quarter-point increase in September to catch up with its peers in containing soaring inflation, a Reuters poll forecast.

Driven by higher transport and food prices, inflation in the Southeast Asian nation accelerated to 6.4% in July, its fastest pace in nearly four years, pushing the central bank to tighten monetary policy at a faster pace.

The Bangko Sentral ng Pilipinas (BSP) followed two modest quarter-point rate rises so far in this cycle with a hefty unscheduled 75 basis point rise on July 14, its most aggressive since the central bank shifted to an inflation-targeting approach in 2002.

The Aug. 8-15 Reuters poll showed nearly 70% of economists, 11 of 16, forecast the BSP would hike its key overnight reverse repurchase facility rate by another 50 basis points to 3.75% at its Aug. 18 meeting. Four expected a 25 basis point hike, while one said no change.

A strong 60% majority of economists, 10 of 16, forecast another 25 basis points hike at the September meeting, taking rates to 4.00%, where they were before the pandemic.

Seven economists forecast rates to reach 4.25% or higher by end-2022. Six expected rates to reach 4.00%, while the remaining three said 3.75% or lower.

“Governor (Felipe) Medalla has stated that a 25 or a 50 bp hike is likely in August, and we think higher-than-expected inflation suggests that the BSP will take the faster approach,” noted Shreya Sodhani, research analyst at Barclays.

“This would also be consistent with the BSP’s commitment to do more to get inflation in line with its target range, as it showed with the large frontloaded hike in July.”

Price pressures are widely expected to remain elevated in the coming months and a weaker peso, which has already fallen 9% this year, has further worsened the outlook through imported inflation.

Inflation was not forecast to fall within the target range of 2%-4% until mid-2023, according to a separate Reuters poll taken in July, largely in line with the central bank’s projection.

Last month, the central bank chief ruled out another surprise move on rates, signaling the next move would be smaller than the 75 basis points delivered in July.

Although annual growth slowed from 8.2% in the first quarter to 7.4% in the last one, it was still the second-fastest so far in Asia, giving the central bank room for further tightening.

BSP has raised rates by 125 basis points since May.

(Reporting by Devayani Sathyan; Additional reporting by Anant Chandak; Polling by Arsh Mogre; Editing by Hari Kishan, Ross Finley and Alex Richardson)

 

This article originally appeared on reuters.com

Read More Articles About:
Worldwide News Philippine News Rates & Bonds Equities Economy Investment Tips Fine Living

You are leaving Metrobank Wealth Insights

Please be aware that the external site policies may differ from our website Terms And Conditions and Privacy Policy. The next site will be opened in a new browser window or tab.

Cancel Proceed
Get in Touch

For inquiries, please call our Metrobank Contact Center at (02) 88-700-700 (domestic toll-free 1-800-1888-5775) or send an e-mail to customercare@metrobank.com.ph

Metrobank is regulated by the Bangko Sentral ng Pilipinas
Website: https://www.bsp.gov.ph

Quick Links
The Gist Webinars Wealth Manager Explainers
Markets
Currencies Rates & Bonds Equities Economy
Wealth
Investment Tips Fine Living Retirement
Portfolio Picks
Bonds Stocks
Others
Contact Us Privacy Statement Terms of Use
© 2025 Metrobank. All rights reserved.

Access this content:

If you are an existing investor, log in first to your Metrobank Wealth Manager account. ​

If you wish to start your wealth journey with us, click the “How To Sign Up” button. ​

Login HOW TO SIGN UP