text1.txt

The Bangko Sentral ng Pilipinas (BSP) may be on the brink of losing control and credibility in herding inflation within the target range if monetary authorities do not adopt a tighter policy stance within the next three months, as growth in prices heat up globally due to the Russian invasion of Ukraine.

ING Bank’s senior economist in the Philippines Nicholas Mapa, in his latest commentary, expressed concern that the BSP intended to hold off tightening until the second half of 2022 while influential central banks like the US Federal Reserve is expected to again raise its policy rate this May.

The US Fed raised their benchmark interest rate by 25 basis points earlier this month and Mapa said a forecast of another 50 basis points in May was likely to be very much in play.