Economists polled by Reuters forecast the Philippine gross domestic product rose a seasonally adjusted 1.6% in the fourth quarter from the previous quarter, accelerating from 1.2% in July-September. On a year-on-year basis, the poll predicted a median of 6.5% growth in the fourth quarter, weaker than the downwardly revised 7% pace in the September quarter, which would mark the first slowdown in nearly two years. For the full-year 2016, economists forecast growth of 6.9%, close to the top end of the government’s 6%-7% percent growth target, and faster than China’s 6.7% and Vietnam’s 6.21%. “We believe the central bank will have to respond and have pencilled in two rate increases for this year,” he said. BSP has not tinkered with its monetary policy since it raised rates by 25 basis points in September 2014.

Source: The Star January 25, 2017 23:32 UTC