BSP seen tightening rates in Q3

Private banks foresee the central bank tightening its policy rates in the second half of the year, despite the slowdown in economic growth in the first quarter, as a precaution against mounting risks of inflation.

In a research note, the Bank of the Philippine Islands (BPI) said the Bangko Sentral ng Pilipinas (BSP) is likely to impose a 50-basis-point hike in policy rates in the third quarter to defend its inflation target of between 2 percent and 4 percent for 2015.