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Economist says 'extremely crucial' for BSP to hike interest rate to fight inflation

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<p>MANILA - The Bangko Sentral ng Pilipinas may need to continue hiking interest rates to rein in inflation and support the Philippine peso, an economist said on Wednesday. </p><p>The country&#x27;s inflation is &quot;extremely reactive&quot; to global factors putting the central bank in a difficult position, AIA Group Market Economist Herve Lievore told ANC. </p><p>Inflation in October hit 7.7 percent, the highest in almost 14 years. Meanwhile, the BSP&#x27;s benchmark borrowing rate now stands at 4.25 percent, 225 basis points higher than at the start of the year.</p><p>&quot;Against this backdrop, BSP has very few options but to tighten monetary policy as much as possible with a view also of limiting the depreciation of the currency,&quot; Lievore said.</p><p>&quot;It’s extremely crucial for the BSP to continue to hike aggressively,&quot; he added.</p><p>BSP Gov. Felipe Medalla has said the Monetary Board would &quot;match&quot; the US Federal Reserve&#x27;s 75-basis points hike last Nov. 2. </p><p>The BSP is set to hold its policy-setting meeting on Thursday, Nov. 17. </p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/11/04/22/inflation-hits-77-pct-in-oct-highest-in-almost-14-years">Inflation quickens further to 7.7 percent in October, highest in nearly 14 years</a></li>	<li><a href="https://news.abs-cbn.com/business/11/03/22/bsp-says-to-match-us-feds-75-bps-rate-hike-on-nov-17">BSP says to &#x27;match&#x27; US Fed’s interest rate hike in Nov. 17 meeting</a></li></ul><figure class="op-interactive"><iframe height="315" src="https://www.youtube.com/embed/XebJCUOJtcg?enablejsapi=1" width="560"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div>

The Bangko Sentral ng Pilipinas may need to continue hiking interest rate as inflation remains high and to support the Philippine peso, an economist said on Wednesday. 