Finance Secretary Benjamin Diokno is confident monetary authorities will consider the latest relevant information before deciding on whether or not to tweak the policy stance in the next Monetary Board meeting.
Diokno, a former BSP governor, said in a briefing over the weekend these information include the gross domestic product, inflation and labor market conditions.
“The decision on policy rate is always based on the latest information. The next policy meeting is on Nov. 16. The third quarter GDP will also be announced in November. Then there will be another labor situation report,” Diokno said.
Diokno said decision making is better when aided by more frequent data.
“There is a slowdown globally… that is the consensus now. Then you look at the other countries… Who knows, maybe next time around inflation goes down… Let us not decide on just one observation,” Diokno said.
The National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan earlier said a further hike in interest rates might affect economic growth.
The policy-setting Monetary Board raises interest rates by a total of 425 basis points to rein in inflation before pausing in the last four meetings.
Balisacan said further raising interest rates would have long-term effects in the succeeding 12 months.
Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. earlier said a rate hike in November 2023 might not be the last one in its tightening cycle, given the persistent elevated inflation.
“We are not convinced it will be the last one in the cycle… We are still on a hawkish stance…,” Remolona said in an interview on Bloomberg TV.