Moody’s: BSP set to increase benchmark borrowing rate amidst persistent inflation

The Bangko Sentral ng Pilipinas (BSP) is expected to raise its benchmark borrowing rate by 25 basis points (bps) this week, according to market analysts.

Moody’s Analytics said the persistently high inflation in the Philippines means that the BSP will likely raise the overnight reverse repurchase rate to curb price pressures.

Both demand and supply-side factors are driving inflation, with the travel sector pushing up prices for accommodation, restaurant meals, and transport.

Meanwhile, higher gas and diesel costs are impacting supply.

China inflation stays low as growth sputters

Chinese inflation came in flat again in May, official figures showed Friday, as the country’s economy sputters owing to softening demand and falling exports, leading to calls for a rate cut and a bigger government stimulus.