In a report, S&P said the BSP decision to raise interest rates by 175 basis points in five consecutive rate-setting meetings may dampen economic growth. “To counter second-round impacts from supply-side inflation, the BSP has been forced to tighten monetary policy this year, potentially dampening the domestic demand growth outlook next year,” S&P said. Furthermore, other factors affecting the Philippines’ economic growth include the global trade tensions that continue to threaten export demand and onshore confidence, it said. The consumer price index is expected to exceed the BSP’s two to four percent target this year before easing back to the target range next year. S&P sees inflation averaging 5.1 percent this year before easing to 3.8 percent next year and 3.5 percent in 2020.

Source: Philippine Star November 25, 2018 16:14 UTC