Philippine Central Bank Unlikely to Raise Rates Today, HSBC's Arbis Says

The video discusses the cautious approach of the BSP towards rate hikes, noting that inflation has peaked but core inflation is rising. It highlights the impact of supply-side factors like oil prices and the potential effects of new excise taxes. The discussion also covers the record trade deficit and concerns about economic overheating and crowding out due to fiscal expansion. The forecast for the peso suggests continued weakness due to a current account deficit.

What is the BSP's expected approach towards rate hikes according to the first section?

• They will decrease rates immediately.

• They will pause and signal future actions.

• They will aggressively increase rates.

• They will maintain the current rate indefinitely.

What is the main reason for the decline in overall inflation despite an increase in core inflation?

• Decrease in food and oil prices.

• Increase in oil prices.

• Increase in food prices.

• Decrease in core inflation.

What could potentially cause the BSP to hike rates again?

• A decrease in trade deficit.

• Implementation of additional excise taxes.

• A decrease in core inflation.

• An increase in market liquidity.

What is the concern related to fiscal expansion and high interest rates?

• Decrease in bank lending rates.

• Increase in market liquidity.

• Crowding out of private investment.

• Overheating of the economy.

What is the expected trajectory of the peso by the end of next year?

• Strengthening to 48.

• Stabilizing at 52.

• Strengthening to 50.

• Weakening to 54.