The Bangko Sentral ng Pilipinas (BSP) is likely to keep its key interest rate unchanged at 2 percent during its policy meeting on Thursday as the resurgence of COVID-19 cases threatens a fragile economic recovery, economists said.
In a research note issued on Tuesday, Citi economist for the Philippines Nalin Chutchotitham said that while food prices remained a concern and inflation was likely to overshoot the BSP’s 4-percent maximum target in the second quarter, weak employment would help keep domestic demand pressures in check.
“It may still raise its near-term inflation forecast on the back of higher global crude oil prices, but will likely highlight the downside risks to inflati…
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