Philippines BSP Balancing The Risks

The Philippines central bank (BSP) hiked rates by 25bps to 4.75% in June 2026, with further tightening expected in 2026 followed by reversals in 2027. Currency forecasts for USD/PHP target a move toward 60.00 by 2Q2027.

Key Takeaways

• 1.The BSP raised the key policy rate by 25bps to 4.75% in June 2026, with an expectation of two further 25bps hikes in 2026.
• 2.MUFG expects the BSP to reverse rate hikes starting in 1Q2027 as headline inflation moderates.
• 3.The USD/PHP forecast is maintained between 60.00 and 61.50 in the near term, with a target of 60.00 by 2Q2027.

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