The benchmark Philippine Stock Exchange index climbed by 132.94 points or 2.01% to close at 6,727.60 on Wednesday, while the broader all shares index went up by 56.41 points or 1.59% to 3,590.06.
BSP Governor Benjamin E. Diokno said in an online briefing on Wednesday that “[the] space for maintaining an accommodative policy stance has considerably narrowed” as inflation continues to notch multi-year highs. It was the quickest pace since the 5.2% print in December 2018. The headline figure also breached the central bank’s 2-4% target for the year.
Some market players are pricing in a rate hike at the BSP’s meeting on Thursday as faster-than-expected economic growth in the first quarter is seen to put upward pressure on inflation.poll of 17 analysts conducted last week showed they are divided on the BSP’s next move, with nine betting rates will remain unchanged, while eight are expecting a 25-bp hike.Meanwhile, Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O.