More Hikes To Come From Philippine Ctrl Bank

Forex News Philippine central bank likely to raise key interest rates further as inflation expected to remain elevated in coming months, says UBS. "While the BSP could still be behind the curve in the battle to cap inflation (real rates are still negative), this is yet another indication that, albeit belated, Asian central banks are reacting strongly to the threat of inflation," says UBS. Expects total 200 bps hike from BSP, of which only 75 bps has so far been delivered; adds rate hike provides clear support for PHP.