Philippines Inflation Underlines Need for More Rate Hikes

Dow Jones
Oct 06

0553 GMT - Philippine inflation pressures broadened materially in September, underscoring increasingly evident second-round effects from energy shocks, Goldman Sachs analysts say. Increasing evidence that higher oil prices are seeping through across the economy points to the need for more interest-rate hikes by the central bank, especially as the Middle East conflict shows no signs of abating. "As a net food and energy importer, the depreciation of the Philippine peso in September likely added to cost pressures as well," GS says. It sticks to its call for 25bp hikes at both the October and December meetings, taking the policy rate to 5.5%.

 

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