BSP may halt easing cycle in Oct.

Citing risks that consumer prices could rise at a faster pace due to the rice importation ban, Germany-based Deutsche Bank believes the Bangko Sentral ng Pilipinas (BSP) is likely to hold its cycle of reducing borrowing costs in October.

- By DERCO ROSAL

“There is still some upside risk to inflation in September and October, alongside the suspension of rice imports over these two months,” Deutsche Bank Research said in a commentary published last Friday, Sept. 5.

It noted, however, that inflation would still settle below the government’s target band of two to four percent.

Last week, Agriculture Assistant Secretary Arnel de Mesa downplayed potential price hikes in locally produced rice after the two-month import ban took effect on Sept. 1. Meanwhile, some imported rice registered a modest increase following the directive’s implementation.