RHB | Philippines | BSP Raised Policy Rates By 25 Basis Points To Anchor Inflation Expectations

Economic Research	01 Aug 2014
Philippines
Economic Highlights
BSP Raised Policy Rates By 25 Basis Points To Anchor Inflation Expectations The Bangko Sentral ng Pilipinas (BSP)’s Monetary Board raised the overnight borrowing and lending rates by 25 basis points to 3.75% and 5.75% respectively on 31 July, while leaving the reserve requirement and the special deposit account (SDA) facility unchanged at 20% and 2.25% correspondingly. This was in line with consensus expectations as the move was predicted by 14 out of 19 economists according to a survey compiled by Bloomberg. Furthermore, the move also came in tandem with our expectations of a 25-50 basis point hike in policy rates in 2H 2014. Economist:  Peck Boon Soon  | +603 9280 2163