Standard Chartered expects the BSP to lift rates to 5.25% in October to combat inflation and stabilize the Philippine Peso, with potential easing not anticipated until the third quarter of 2027.
Standard Chartered has revised its outlook for the Bangko Sentral ng Pilipinas (BSP), now projecting a 25 basis point rate hike to 5.25% in October. This shift is driven by persistent inflationary pressures, rising global oil prices, and the ongoing depreciation of the Philippine Peso, which necessitates a tighter monetary policy stance to stabilize the currency.
Standard Chartered expects the rate to reach 5.25% following a 25bps hike in October.
The bank anticipates monetary easing to commence in Q3 2027, contingent on inflation returning to target levels.
Standard Chartered economists have revised their outlook, now projecting a 25 basis point interest rate hike by the Bangko Sentral ng Pilipinas in October. The adjustment follows persistent inflationary pressures, rising global oil prices, and the recent depreciation of the Philippine Peso.
The hike is driven by broader September inflation, elevated global oil prices, and the need to support the Philippine Peso against depreciation.