• BSP raised its overnight borrowing rate by 75 basis points to 5.00% on Nov. 17, in line with its announcement earlier this month.
• The central bank hinted more tightening is in the pipeline, saying it will keep taking action to return inflation to the target. It also said domestic demand is expected to remain firm and that there was increased likelihood of second-round effects and persistent price pressures.
• BSP again raised its inflation forecast for 2022, lifting it to 5.8% from 5.6% in September. It also lifted its projection for 2023 by 0.2 percentage point to 4.3% — further above the2%-4% target range. It said risks to this outlook lean “strongly” to the upside.
• The central bank’s large rate hikes, along with signs the Federal Reserve looks set to slow the pace of its tightening, have helped stabilize the peso.