ING’s Deepali Bhargava warns that higher Oil prices and supply disruptions are worsening growth, inflation and external balances in the Philippines. The report highlights rising odds of a Bangko Sentral ng Pilipinas (BSP) rate hike as inflation breaches target, but stresses that tighter policy alone is unlikely to change the Philippine Peso’s trajectory against the Dollar in coming months.
Oil shock drives inflation and policy dilemma
“The oil shock has forced the Philippines to dec