Inflation probably exceeded 4.0 percent again in April, breaching the government’s target range and further pressuring monetary authorities to finally hike key interest rates, analysts polled by The Manila Times said. Analysts from IHS Markit, Land Bank of the Philippines, HSBC and Ateneo de Manila University all forecast April inflation of 4.5 percent. “These factors could potentially keep inflation elevated, despite downward corrections from this year’s one-time hike in excise taxes,” Dumalagan said. He also highlighted a narrowing interest rate gap between the Philippines and the United States with the Federal Reserve continuing with a tightening cycle. The US central bank, which raised interest rates for the first time this year in March, will next meet on May 1 to 2.

Source: Manila Times April 29, 2018 16:41 UTC