Philippine Property Market: BSP Rate Hike Watch Continues
Analysts flag possible fourth BSP rate hike as El Niño and peso pressures persist
Written by PropVela Editorial TeamPublished 1 min read
Today's roundup focuses on monetary policy, a key factor shaping borrowing costs for homebuyers and developers across the Philippines.
Analysts see scope for one more BSP rate hike
The Bangko Sentral ng Pilipinas may still deliver another interest rate increase before the year is out, according to analysts who point to El Niño-driven food price risks and continued pressure on the peso. This comes despite the central bank's own hints that it wants to hold off following three straight hikes. On August 27, the Monetary Board lifted the target reverse repurchase rate by 25 basis points to 5 percent, bringing total tightening since April to 75 basis points as policymakers work to keep inflation expectations anchored and stop supply shocks from spilling into broader price increases. For property buyers and developers, sustained tightening means mortgage rates and project financing costs are likely to stay elevated for longer. According to Philstar.com, the possibility of a fourth hike remains firmly on the table.