Inflation top risk to economy this year, 2 rate hikes likely: analyst

ABS-CBN News

<figure class="op-interactive"><div id="IVS_ABS_Video_Widget_1_Container"><ivs-player id="IVS_ABS_Video_Widget_1" allow="autoplay" data-ivs-key="e8c22c015ca9eafa76f1e3edfa03c603" data-ivs-spid="3001339" data-ivs-wid="f5fb7bd1-3880"></ivs-player><script src="https://player.ivideosmart.com/ivsplayer/v4/dist/js/loader.js"></script></div></figure><div class="iwantbar">Watch more in <a href="~//www.iwantv.com.ph/">iWantv</a> or <a href="~//tfc.tv/">TFC.tv</a></div><p>MANILA - Gradually rising inflation poses the biggest risk to the economy, with the central bank likely to raise benchmark rates up to 2 times this year, an analyst said Thursday.</p><p>The peso&#x27;s weakness and the effects of tax reform will lead to a &quot;much faster&quot; inflation in 2018, with the full-year average likely to settle at 3.6 percent, BDO Unibank chief market strategist Jonas Ravelas said.</p><p>The Bangko Sentral ng Pilipinas is targeting a 2 to 4 percent range for inflation. It will meet for the first time this year on Feb. 8.</p><p>&quot;We’re penciling 2 hikes this year, but most likely, that could happen in the second half,&quot; Ravelas told ANC&#x27;s Market Edge with Cathy Yang.</p><p>Should consumer prices rise faster than expected in the first 6 months of the year, Ravelas said the BSP could raise rates as early as the second quarter.</p><ul class="op-related-articles">	<li><a href="http://news.abs-cbn.com/business/12/06/17/hot-economy-unlikely-to-overheat-bsp-governor">&#x27;Hot&#x27; economy unlikely to overheat: BSP Governor</a></li></ul><p>A weak peso increases the spending power of families of overseas Filipinos, who rely on dollar remittances.</p><p>Tax reform, on the other hand, will increase the take-home pay of most salaried workers due to lower personal income tax rates. It also raised duties on fuel, cars and sugar-sweetened drinks.</p><ul class="op-related-articles">	<li><a href="http://news.abs-cbn.com/business/01/04/18/cost-of-train-will-softdrink-fuel-taxes-offset-higher-take-home-pay">Cost of TRAIN: Will softdrink, fuel taxes offset higher take-home pay?</a></li></ul><p>Ravelas said the economy could grow by 6.7 percent in the fourth quarter of 2017 based on market consensus, slower than 6.9 percent in the previous quarter.</p><ul class="op-related-articles">	<li><a href="http://news.abs-cbn.com/business/11/16/17/economy-sizzles-in-forecast-beating-q3-growth">Economy sizzles in forecast-beating Q3 growth</a></li></ul>

<p>Gradually rising inflation poses the biggest risk to the economy, with the central bank likely to raise benchmark rates up to 2 times this year, an analyst said Thursday.</p>

Gradually rising inflation poses the biggest risk to the economy, with the central bank likely to raise benchmark rates up to 2 times this year, an analyst said Thursday.

Inflation top risk to economy this year, 2 rate hikes likely: analyst | ABS-CBN

Halalan 2025

Entertainment

News

Metro.Style

Lifestyle

Sports

More

Traffic

Horoscope

Business

Inflation top risk to economy this year, 2 rate hikes likely: analyst

Inflation top risk to economy this year, 2 rate hikes likely: analyst

ABS-CBN News

Published Jan 18, 2018 04:21 PM PHT

|

Updated Jan 18, 2018 04:37 PM PHT

Read More:

inflation

economy

interest rates

monetary policy

tax reform

ABS-CBN is the leading media and entertainment company in the Philippines, offering quality content across TV, radio, digital, and film. Committed to public service and promoting Filipino values, ABS-CBN continues to inspire and connect audiences worldwide.

Corporate

Investors

Governance

International Distribution

Corporate

Governance

Investors

International Distribution

NPC Seal of Registration

Privacy Policy

AI Policy

Terms of Service

Advertise with Us

© 2025 ABS-CBN Corporation. All Rights Reserved.

NPC Seal of Registration

Privacy Policy

Terms of Service

AI Policy

Advertise with Us

© 2025 ABS-CBN Corporation. All Rights Reserved.

NPC Seal of Registration

Privacy Policy

Terms of Service

AI Policy

Advertise with Us

© 2025 ABS-CBN Corporation. All Rights Reserved.