A hawkish BSP may come 'sooner and faster' in 2022 — Fitch unitFor Governor Benjamin Diokno, there are signs already that the economy is starting to heal, but he stressed that the recovery has been delicate as the pandemic drags on. MANILA, Philippines — The Bangko Sentral ng Pilipinas may start tightening monetary policy "sooner and faster" amid growing pressure from a hawkish US Federal Reserve, recovering domestic demand and elevated inflation. Next year, the BSP sees inflation settling at 3.3%, faster than the old projection of 3.1%. That said, Fitch Solutions believes the BSP’s space to keep its ultra-loose monetary policy is narrowing. In turn, Fitch Solutions said the BSP may follow suit and hike rates to avert a deep currency slump and stem capital outflows.

Source: Philippine Star September 27, 2021 06:11 UTC