The softer-than-expected inflation print in May could give the Bangko Sentral ng Pilipinas (BSP) room to adopt a more measured approach to tightening, according to economists cited by Philstar Biz .
Despite the lower headline figure, underlying price pressures remain persistent, leading most economists to believe that another rate hike is still on the table. The BSP has been grappling with elevated inflation driven by supply-side factors and strong demand.
Analysts noted that the central bank will likely monitor upcoming data before deciding on its next move, balancing the need to curb inflation with supporting economic growth. The possibility of a rate hike at the next policy meeting remains high.