DBS Bank of Singapore expects the Bangko Sentral ng Pilipinas to increase interest rates again this week to calm the domestic financial markets, six weeks after it raised the policy rate by 25 basis points to 3.25 percent.
Duncan Tan (strategist) and Irvin Seah (economist) of DBS Group Research said in a report Tuesday the US rates had pulled back while the US dollar had consolidated somewhat since the Bangko Sentral raised rates at its last meeting on May 10,
“Despite this slightly more forgiving global environment, the BSP will probably hike again this Thursday,” they said.
The Monetary Board is set to hold its meeting today instead of Thursday, citing in an earlier statement that the adjustment in schedule was due to “tight schedule of other activities for this round.”
Bangko Sentral Governor Nestor Espenilla Jr. is included in the Philippine delegation to Japan this week, along with Finance Secretary Carlos Dominguez III and other economic managers.