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Moody's Analytics expects the Bangko Sentral ng Pilipinas (BSP) to keep the policy rate at 6.5 percent this Thursday with inflation expected to continue slowing in November and December, according to a report by Manila Times.
"We expect inflation to ease over the last two months of 2023 but stay above BSP's target range of 2 percent to 4 percent," it said in a report on Monday.
The central bank's policy-setting Monetary Board last month ordered an off-cycle 25-basis point rate hike ahead of its November 16 meeting, citing rising inflation risks.
Consumer prices picked up anew in August and September but slowed to a three-month low of 4.9 percent last month, pulled down by slower increases in the prices of food and nonalcoholic beverages.
The October result brought the year-to-date average to 6.4 percent, still well over the BSP's 2.0- to 4.0-percent target.
BSP Governor Eli Remolona Jr. has said that monetary authorities would be looking at the latest inflation numbers and third-quarter gross domestic product (GDP) growth data before they decide whether or not to tweak current policy settings.
The Philippine economy grew by a stronger-than-expected 5.9 percent in the third quarter, accelerating from a disappointing 4.3 percent three months earlier.
The July-to-September result nearly hit the low end of the 6.0- to 7.0-percent target for 2023. Year-to-date, however, economic growth remains well below the goal at 5.5 percent.