The Bangko Sentral ng Pilipinas (BSP) may embark on a new monetary tightening cycle next year with interest rate hikes likely to sum up to 50 basis points as the domestic economy regains ground, UK-based think tank Fitch Solutions said.
This hawkish bias in 2022 is seen to come before the US Federal Reserve’s own monetary tightening cycle, thus providing some support for the peso, Fitch Solutions said in a research note dated June 17.
The think tank expects the peso to trade sideways in the near term before weakening over the longer haul. As the country’s current account flips from surplus to deficit over the coming quarters, it is projecting the peso to depreciate modestly, with d…
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