This week, investors will be on the lookout for the August inflation print, which could be used as a gauge to determine the next monetary policy move of the Bangko Sentral ng Pilipinas (BSP).
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., cited the upcoming inflation data as a major catalyst this week at the local bourse, which is holding on to the 6,500 to 6,600 territory for support.
The central bank said inflation likely settled within the range of 5.9 percent to 6.7 percent last month.
The forecast was based on elevated key food prices “but could be offset in part by the decline in global oil prices” alongside the reduction in electricity rates, according to the BSP.
Inflation in July climbed to 6.4 percent from 6.1 percent in the previous month.
Coming from an off-cycle, mammoth 75-basis point increase in July, the Monetary Board again raised rates in August. The key policy rate now stands at 3.75 percent.
But it’s not just the Philippines battling high inflation. Local investors have likewise expressed concern over the hawkish stance of the United States’ Federal Reserve.
On Friday, the Philippine Stock Exchange index (PSEi) managed to book some gains after the manufacturing industry showed improvements. The benchmark PSEi climbed by 1.58 percent, or 104.37 points, to close at 6,692.65. INQ