MANILA – Inflation could accelerate to 5.7 to 5.8 percent in August, putting pressure on the Bangko Sentral to raise its benchmark borrowing rate for the third time this year, an analyst said recently.
Rising consumer prices is a “concern” for regulators, who have so far raised the key rate by 50 basis points in 2 successive meetings, said Standard Chartered Bank Asia economist Chidu Narayanan. The Monetary Board will meet again on Aug. 9.
With inflation expected to taper off in the fourth quarter, the BSP will likely analyze the impact of as many as 3 rate hikes before considering a fourth, he said. (ABS-CBN News)
