The Bangko Sentral ng Pilipinas (BSP) [link] announced yesterday, after the market close, that it would hold interest rates steady for September. This followed the overnight decision of the US Federal Reserve to do the same. The BSP’s Governor, Eli Remolona, said that the latest BSP projections “show a slightly higher inflation path”, but that inflation is still projected by the BSP to “revert to the 2 to 4 percent target range by Q4 2023”. Mr. Remolona qualified this projection, saying that the stated timeline applies “in the absence of further supply-side shocks.” While the BSP Governor said that any rate cuts are “off the table” for this year, he could not say the same for further rate hikes coming as soon as the Monetary Board’s next meeting in November.