Another interest rate hike orderedhome/Business/Top Business/Another interest rate hike ordered2018 inflation forecast raised to 5.3%; 2019, 2020 projections revised by Monetary BoardMONETARY authorities raised key interest rates for a fifth time this year on Thursday, noting still-elevated inflation risks and bucking analysts’ expectations of a pause given a third quarter growth slowdown. The 2019 projection was lowered to 3.5 percent from 4.3 percent but that for 2020 was raised to 3.3 percent from 3.2 percent. A generally favorable domestic economy could “allow some scope for a measured adjustment in the policy rate to rein in inflation expectations and pre-empt further second-round effects,” she added. “If we are right, then we think today’s (yesterday’s) hike will be the last in the current cycle. The BSP will also be concerned about pressing the brakes too hard given the worsening outlook for economic growth,” he said.

Source: Manila Times November 15, 2018 16:55 UTC