Rate hikes paused as inflation slowshome/Business/Top Business/Rate hikes paused as inflation slowsMONETARY authorities decided to keep key interest rates unchanged on Thursday — pausing from five consecutive hikes since May — given the likelihood of lower inflation. The central bank’s policymaking Monetary Board also cut its inflation forecast for 2018 to 5.2 percent from 5.3 percent — still above the 2.0-4.0 percent target. Rate hikes next year are unlikely if overall inflation falls further over the coming months and as food and energy prices moderate, he added. “In fact, we see a risk of a rate cut if growth slows in first-half 2019. Our proprietary monetary conditions index for the Philippines indicates that conditions are now less loose than they were in mid-2018; they are likely to tighten further as inflation slows in 2019,” he added.

Source: Manila Times December 13, 2018 18:00 UTC