BSP: 25 bps interest rate hike possible in November

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BSP: 25 bps interest rate hike possible in November
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Monetary authorities will likely opt for a 25-basis-point increase if another interest rate adjustment is warranted next month, Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. said over the weekend.

Remolona also clarified that local monetary authorities decided to raise the policy rate by just 25 basis points to 6.5 percent on Thursday, instead of the bigger 50 basis points because they were waiting for the latest data. Remolona said last week that he was hoping the coming data would be nicer to monetary authorities, otherwise another rate hike might happen.

Remolona said despite the aggressive policy stance, the monetary tightening had not affected the economy’s growth prospects, saying the slowdown in the past months was due to the waning of pent-up demand.

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