Philippines central bank sees November inflation at 7.4-8.2% | Inquirer Business

Philippines central bank sees November inflation at 7.4-8.2%

/ 02:29 PM November 30, 2022

MANILA – The Philippines central bank expects November annual inflation to be in a range of 7.4 percent to 8.2 percent, reflecting upward price pressures from electricity and agricultural products, it said on Tuesday.

Inflation, which hit its highest in nearly 14 years at 7.7 percent in October, is expected to decelerate gradually in the following months as cost-push shocks owing to bad weather dissipate, the central bank added.

ADVERTISEMENT

Also on Tuesday, Bangko Sentral ng Pilipinas (BSP) Governor Felipe Medalla said the central bank may pause its interest rate hikes in the first quarter of next year if there are “no major shocks.”

The Bangko Sentral ng Pilipinas has raised policy rates six times this year to 5 percent to curb inflation, running near 14-year highs, and support the peso which has fallen sharply against the dollar, because of aggressive U.S. monetary tightening.

FEATURED STORIES

Medalla told reporters his own “base case scenario” is that the Federal Reserve will pause policy tightening in the first quarter of 2023, easing pressure on the BSP to match its policy actions.

Asked if the BSP will pause next year, Medalla said: “Maybe the first quarter, depending on developments.”

The Fed has raised borrowing costs faster this year than at any time since the early 1980s, using jumps of 75-basis-points at each of the last four meetings to bring the policy rate to its current 3.75 percent-4 percent range.

Fed policymakers have signaled they may move more slowly starting at their meeting next month, even as some including Fed Chair Jerome Powell have signaled interest rates may ultimately need to go higher.

BSP’s Medalla said the central bank has room to respond to any Fed move either “fully or partially”, depending on data.

The central bank, which meets every six weeks, will meet for the last time this year on December 15.

Subscribe to our business newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: economy, Inflation, Philippine
For feedback, complaints, or inquiries, contact us.

Subscribe to our business news

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.



© Copyright 1997-2023 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.