Articles worth reading

EcoWaste issues warning on toxic shrilling chicken toy containing toxic chemical

account_balanceMetro Manila access_time4 days ago

The toxics watchdog group EcoWaste Coalition has again advised consumers to refrain from buying an unauthorized Shrilling Chicken plastic toy from China, which is sold in physical and online stores as a squeaky toy for kids as well as pets. The grou...

Photo courtesy of: UPMV K9 Corps

This training program transforms pets into search-and-rescue allies

account_balanceMetro Manila access_time4 days ago

Would you like to help your furbaby find a greater purpose? There's a program that trains domestic pets to locate individuals during search and rescue missions or apprehension scenarios. The University of the Philippines-Metro Manila Developmen...

PAO conducts legal, medical, jail visitation and decongestion program 

account_balanceMetro Manila access_time5 days ago

The Public Attorney’s Office (PAO), led by Atty. Persida Rueda-Acosta, conducted Legal, Medical, Jail Visitation, and Decongestion Program for the Persons Deprived of Liberty (PDL) of New Bilibid Prison – Maximum Security Compound (NBP &n...

Metro News

Fitch unit expects another interest rate hike

account_balanceMetro News account_circleRyan Chua chat_bubble_outline0 Comments

Fitch Solutions Country Risk & Industry Research forecasts additional 75 basis points increase in the Bangko Sentral ng Pilipinas’ (BSP) key policy rates until the first half of 2023 on expectations of sustained elevated inflation rate, according to a report by Philippine News Agency.

In a report dated Nov. 18, 2022, the unit of Fitch Group projects a 50 basis points increase in the central bank’s key rates next month and a 25 basis points hike in the first half next year.

“The central bank will remain resolute in reigning in high domestic inflation, which we expect to average 5.8 percent in 2022 before moderating slightly to 4.8 percent in 2023,” it said.

Last week, the central bank’s key rates were increased by another 75 basis points, which brought the overnight reverse repurchase rate to 5 percent.

This, after monetary authorities noted that risks to inflation remain on the upside, with both the 2022 and 2023 average inflation projections adjusted higher.

The BSP’s average inflation forecast for this year has been hiked from 5.4 percent to 5.8 percent and next year’s figure was changed from 4 percent to 4.3 percent.

Last October, the rate of price increases rose to 7.7 percent, over 14-year high, from month-ago’s 6.9 percent.

This brought the average inflation in the first 10 months this year to 5.4 percent, higher than the government’s 2-4 percent target band.

Amid projections of sustained high inflation rate, Fitch Solutions considers stabilization in global monetary conditions and headwinds in economic growth as factors for a slower pace of monetary policy tightening in the coming months.

“Our forecasts are in line with consensus in 2022, but a bit higher than the 5.50 percent in 2023,” it said.

The report also cited monetary authorities’ statements that the latest rate hike is aimed at cushioning the impact of external headlines on the domestic economy and exchange rate fluctuations.

It said the peso has stabilized against the US dollar since October after hitting its record-low of 59.00 several times that month.

It added the local currency is now less overvalued on a real effective exchange rate basis.

Last Friday, the peso ended the trading at 57.26 to a US dollar and is still trading at 57-level at the start of this week.

“If we are right, there will be less of a need for the BSP to lean towards aggressive rate hikes to defend the peso going forward,” it said.

The report said while the domestic economy continues to recover from the pandemic, with the third quarter growth accelerating further to 7.6 percent from the upwardly revised 7.5 percent in the previous quarter, risks to economic growth are rising.

“Further ahead, we think that the lagged impact of persistent inflation, weaker external demand, and high interest rates will lead to a slowdown in growth, which we expect to slow from 7.4 percent in 2022 to 5.9 percent in 2023,” it added.

date_rangeDate Published
1 year ago
shareShare article
folder_openArticle tags
content_copyCategorized under

Share your thoughts with us

Related Articles

Daniel Padilla, Maris Racal spotted at Rivermaya reunion concert

account_balanceMetro Manila chrome_reader_mode3 days ago

The attendance of celebrities including Daniel Padilla and Maris Racal added more sparkle to the reunion concert of the popular '90s band, Rivermaya, on Saturday night. Composed of Bamboo Mañalac, Mark Escueta, Nathan Azarcon, and Rico Bl...

Gov't to uphold 'assertive transparency' in West Philippine Sea

account_balanceMetro Manila chrome_reader_mode5 days ago

The Philippine government continues to uphold a policy of "assertive transparency" on the actions of the Chinese government in the West Philippine Sea (WPS), an official of the Philippine Coast Guard (PCG) said in a report by Philippine New...

Photo Courtesy of COMELEC / Facebook

Over 348,000 register with Comelec 

account_balanceMetro Manila chrome_reader_mode1 day ago

The Commission on Elections (Comelec) said Tuesday it has processed 348,349 applications in the first week of the resumption of voter registration for the 2025 midterm polls,according to a report by Philippine News Agency. Comelec chair George Garci...

Golden Parachute

account_balanceMetro Manila chrome_reader_mode1 hour ago

Junior is in his third year of administration. This time is a bit critical, particularly next year with the holding of the mid-term election. Now, the gossip going around the Palace by the River is an impending reshuffle and/or revamp of members of ...

Click on the article to continue reading
Quezon City adopts no contact apprehension system Red Cross pushes saliva test Vaccines from COVAX to arrive in Q1 Makati Shangri-La to close doors on Feb. 1 Cities in NCR to start vaccination simultaneously Mother, girlfriend of Filipino infected with UK variant also test positive Send Press Release MNC Facebook Page MNC Twitter Page MNC Instagram Page LGU Spotlight Barangay Front Business Sports Entertainment Metro Gen Metro Feature