Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Interest Rates

News : Interest Rates
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 

Philippines seen holding rates after five consecutive hikes: Reuters Poll

share with twitter share with LinkedIn share with facebook
share via e-mail
0
12/07/2018 | 06:44am EST
A logo of Bangko Sentral ng Pilipinas is seen at their main building in Manila

MANILA (Reuters) - The Philippine central bank is widely expected to keep interest rates steady on Thursday with inflation seen easing further after it slowed to a four-month low in November, a Reuters poll showed.

Eleven out of 13 analysts polled expect the central bank to leave the overnight reverse repurchase rate <PHCBIR=ECI> at 4.75 percent, after hikes at each of the last five meetings raised it by a total 175 basis points (bps).

The other two forecast a further hike of 25 basis points (bps) when the Bangko Sentral ng Pilipinas (BSP) reviews monetary policy on Dec. 13.

Annual inflation eased for the first time in nearly a year in November, slowing to 6.0 percent from 6.7 percent in the previous two months, when it had been its highest rate in nearly a decade.

But core inflation, which strips out volatile food and fuel items, rose to 5.1 percent from October's 4.9 percent, prompting BSP Governor Nestor Espenilla to say that "monetary policy will need to stay vigilant to keep inflation under firm control."

"We expect the BSP to take stock of its recent actions at the December meeting, using it to discuss any need for future rate hikes and to guide markets on the year ahead," said Noelan Arbis, economist at HSBC in Hong Kong.

Analysts are split on the outlook for next year, with some expecting the BSP to resume hiking rates as early as the first quarter. Others believe the tightening cycle may be over and that the BSP's next move in 2019 may be a rate cut.

BSP Deputy Governor Diwa Guinigundo said average inflation in 2019 and 2020 could even be lower than the central bank's forecasts of 3.5 percent and 3.3 percent, respectively, because of easing food and fuel prices.

With inflation seen returning to within the central bank's 2-4 pct target range next year, Capital Economics economist Alex Holmes said further rate hikes in 2019 are unlikely.

But HSBC's Arbis said fresh price pressures could arise from a second tranche of excise tax increases that would justify a 25 bps hike in first quarter.

President Rodrigo Duterte on Tuesday approved a further hike in excise tax on fuel products from January 2019, reversing an earlier stance to postpone it following a slide in global oil prices.

(This story has been refiled to remove extraneous words in 6th paragraph).

(Reporting by Enrico dela Cruz and Karen Lema; Editing by Simon Cameron-Moore)

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Interest Rates"
02/22China Kicked Off 2019 Local Government Bond Issuance
DJ
02/21Bank of Canada head says path back to neutral rates 'highly uncertain'
RE
02/21ECB profits rise on bond income
RE
02/20Tech Stocks Up on Interest Rates View - Tech Roundup
DJ
02/20Fed flags end to balance sheet runoff, patience on rates
RE
02/20Fed flags end to balance sheet runoff, patience on rates
RE
02/20Volvo Cars raises $215 million in bond issue months after failed IPO
RE
02/20Tunisia central bank chief says raising rates not enough to curb inflation
RE
02/20Zimbabwe scraps bond note, U.S. dollar peg - central bank
RE
02/19Fed's Mester Sees Rates Slightly Higher This Year -- 2nd Update
DJ
Latest news "Interest Rates"
Advertisement