Capital Economics: The Philippine central bank's rate hike cycle has limited room left and may reverse next year.

Jinse Finance reports that on June 29, Capital Economics stated in a report that there is limited room for further rate hikes by the Philippine central bank, and the cycle is likely to reverse next year. After the slowdown in the first quarter, the Philippines' economic recovery may be sluggish, partly due to the initial impact of the global energy shock. Inflation has also surged significantly in recent months amid rising energy prices. Currently, Capital Economics expects the Philippine central bank to raise rates by at least another 25 basis points to 5.00%, as it focuses on the threat posed by high inflation. However, concerns over the weak Philippine economy may prompt the central bank to adopt a wait-and-see stance soon and possibly begin cutting rates from early 2027.
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