AN economist has forecast further hikes in the Bangko Sentral ng Pilipinas' (BSP) key policy rates even with the 50-basis-point increase on Thursday, citing the need to address interest rate differentials with the Federal Reserve (Fed).
Rizal Commercial Banking Corp. chief economist Michael Ricafort, in a report dated August 18, said the latest increase in the BSP's key rates is a preemptive move as the Federal Open Market Committee is projected to hike the Fed's key rates by 50 basis points to 75 basis points during its meeting on September 21.
Rizal Commercial Banking Corp. chief economist Michael Ricafort. RCBC FILE PHOTO