{"id":318303,"date":"2022-10-28T01:10:58","date_gmt":"2022-10-27T17:10:58","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=318303"},"modified":"2023-01-02T12:21:32","modified_gmt":"2023-01-02T04:21:32","slug":"interest-rates-could-rise-by-1-before-year-end-says-bsp-governor","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/interest-rates-could-rise-by-1-before-year-end-says-bsp-governor\/","title":{"rendered":"Interest rates could rise by 1% before year-end, says BSP Governor"},"content":{"rendered":"\n<p>Philippine interest rates could rise by more than 100 basis points (bps) 0r 1% before the year ends, the central bank governor said on Monday, in step with large rate hikes expected to be delivered by the US Federal Reserve to fight inflation.<\/p>\n\n\n\n<div style=\"height:26px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Analysis and Recommendation<\/h2>\n\n\n\n<p>With the Fed expected to raise rates by 75 bps this November meeting and 50bps by December, we expect BSP to follow suit but higher in order to maintain spread at more than 100bps. <\/p>\n\n\n\n<p>This underpins the possibility that it may raise rates to 5.6%, which assumes a 110-bp spread over expected year-end figure for the fed rate at 4.5% by yearend. We note, however, that there is still some upside risk to BSP rate as the 10-year average spread, for BSP and the Fed is around 180-bps.<\/p>\n\n\n\n<p>While the market continues to anticipate upcoming earnings results, going forward towards the year-end, we expect worries to focus back on interest rates, therefore topslicing near the PSEI&#8217;s resistance level of 6,200 should be prudent.<\/p>\n\n\n\n<p>In the meantime, amidst the earnings season, investors may take advantage of the potential swings to range trade, focusing on those that are likely to outperform:<\/p>\n\n\n\n<p><strong>Banks<\/strong> &#8211; BDO (Target Price: P159.00); MBT (Target Price: P62.00; SECB (Target Price: P140.00)<\/p>\n\n\n\n<p><strong>Power generators<\/strong> &#8211; AP (Target Price: P36.40); FGEN (Target Price: P29.30); SCC (Target Price: P44.00)<\/p>\n\n\n\n<p><strong>Gaming<\/strong> &#8211; BLOOM (Target Price: P9.40)<\/p>\n\n\n\n<p><strong>Consumer<\/strong> &#8211; URC (Target Price: P153.00); CNPF (Target Price: P30.40); DNL (Target Price: P10.50); PGOLD (Target Price: P56.40)<\/p>\n\n\n\n<div style=\"height:26px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p style=\"font-size:16px\"><em><em>This report is prepared by PinoyInvestor\u2019s partner broker below. Find out more about <a href=\"https:\/\/www.pinoyinvestor.com\/smartinvestor\/our-partner-brokers\/\">our partner brokers<\/a> and sign up to avail their complete trading brokerage services.<\/em><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here&#8217;s a commentary on an important issue or event affecting the stock market  <\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-318303","post","type-post","status-publish","format-standard","hentry","category-special-reports","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/318303","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=318303"}],"version-history":[{"count":3,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/318303\/revisions"}],"predecessor-version":[{"id":319895,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/318303\/revisions\/319895"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=318303"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=318303"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=318303"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}