BSP Seen Delivering 25-Bps October Hike, Not Larger Increase
Barclays economist Brian Tan sees little chance of a 50-bps BSP hike in October as weak domestic growth may limit a stronger inflation response.
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what happened
Newsmetry API reports that Bangko Sentral ng Pilipinas is unlikely to lift its policy rate by 50 basis points later in October, even after September inflation came in unexpectedly high. Barclays economist Brian Tan said headline consumer prices increased 7.2% from a year earlier, accelerating from August’s 6.1% rise. He added that the central bank’s policy stance remains hawkish.
Tan nevertheless expects concerns about a weak domestic growth outlook to prevent policymakers from opting for a larger increase to contain inflation pressures. Gross domestic product growth slowed to 2.3% in the second quarter from 2.8% in the first. Barclays still expects the BSP to raise rates by 25 basis points in October and now projects another 25-basis-point increase in December.
why it matters
The outlook points to continued monetary tightening, but in smaller steps. A slowdown in GDP growth may constrain the BSP’s response even as September inflation strengthens the case for a hawkish policy stance.
instruments
sources
- Philippine Central Bank Unlikely to Raise Rate by 50 Bps in October — Market Talk — Newsmetry API, 13 October 2026 at 03:46 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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