UK-based Pantheon Macroeconomics has warned Philippine monetary authorities to not let their guard down given the upside inflation risks coming from normalizing global oil prices.
After the Bangko Sentral ng Pilipinas’ (BSP) Monetary Board kept the policy rate at a record-low of 2 percent last Wednesday, Pantheon Macroeconomics senior Asia economist Miguel Chanco said the central bank seemed to have become “overly confident about the inflation outlook.”
Chanco noted the revision in the BSP’s 2021 inflation forecast to 3.9 percent from 4.2 percent. This, he said, implied that the central bank “believes that inflation has peaked.”
“We are skeptical of this view,” he said in a repo…
Keep on reading: Be wary of upside inflation risk from rising oil prices, BSP told