The Philippines’ central bank (BSP) kept policy rates on hold at 4.0% today. This was expected by the consensus although we had thought there might be a hike. The economic upswing should stay on track but the policy rate is already relatively high while inflation will probably remain subdued. The BSP also gave no hints today that a move on rates was imminent. Accordingly, we have changed our forecast and now see rates on hold until the beginning of Q4.