Sticky core inflation seen to keep BSP on tightening path
Economists suggest that the Bangko Sentral ng Pilipinas may continue its monetary tightening cycle as core inflation remains sticky. Despite easing headline inflation, rising costs in services and energy are driving broader price increases across the economy.
Why it matters
Persistent core inflation influences central bank interest rate decisions, which directly impact borrowing costs and economic growth in the Philippines.
THE BANGKO SENTRAL ng Pilipinas (BSP) could extend its tightening cycle as the widening pass-through effects of energy shocks stemming from the Middle East war are expected to keep core inflation elevated, analysts said.
The article relies on expert analysis and economic data to explain monetary policy trends.
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