In response to persistent supply shocks, the Central Bank of the Philippines may resume monetary tightening as early as November, according to a statement made by the bank's Governor, Eli Remolona on Friday. The governor indicated that the chances are favorable for a shift back towards monetary tightening, potentially leading to an increase in the benchmark interest rate.
Governor Remolona suggested that more than one rate hike could be on the horizon, indicating a period of increased economic adjustment for the country. This prospective policy change is seen as a direct response to unyielding supply shocks that continue to impact the nation's economy. The move towards higher benchmark interest rates is viewed as an attempt to curb inflation and stabilize the economic environment in the Philippines.
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