BSP seen hiking rates by 75bps

THE Bangko Sentral ng Pilipinas (BSP) is expected to tighten its monetary policy stance next year by hiking key interest rates by up to 75 basis points (bps), according to Fitch Solutions and MUFG Bank Ltd..

"We at Fitch Solutions maintain our forecast for the Bangko Sentral ng Pilipinas to begin monetary tightening in 2022, with its key policy rate rising to 2.75 percent by year-end," the unit underscored in a report. After cutting to 2.00 percent in November 2020, Fitch Solutions does not expect the central bank to abandon its supportive stance next year. Before starting its hike cycle, the BSP will wait for a more prolonged rebound in the economy and credit growth, as well as less uncertainty from Covid-19.