Phillipine Central Bank Governor says the Bank will do as many hikes as possible with a proactive stance, hikes will depend on how big spillover effects are, highlights that inflation expectations have risen but not become unanchored

The Philippine Central Bank Governor's remarks suggest a hawkish shift in policy, indicating readiness for multiple rate hikes dependent on inflation spillover effects. While inflation expectations have increased, they remain anchored, which mitigates immediate pressure; however, the proactive stance signals a vigilant approach towards future economic conditions. This could imply adjustments in fixed income and FX markets as traders reassess the trajectory of monetary policy moves from the Philippines and their potential impact on regional dynamics.