Economics
Biggest Rate Hike in a Decade on the Cards for Philippines
- Most economists see a 50 basis-point hike to 4% on Thursday
- Economic growth forecast at more than 6% in second quarter
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The question facing policy makers in the Philippines is not whether to raise interest rates for a third time in a row, but by how much.
A booming economy, surging inflation and pressure on the currency are setting the stage for a 50 basis-point increase in the benchmark rate to 4 percent on Thursday, according to most of the 17 economists surveyed by Bloomberg. That would be the biggest hike since 2008 and follows a similar move by Indonesia as central banks in emerging markets take more aggressive steps to curb the fallout from rising U.S. rates and a stronger dollar.