Philippines May Hike 25 or 50 BPS in March: Medalla

The video discusses the central bank's potential actions in response to economic data, focusing on interest rate changes. It explores the factors contributing to inflation, including supply and demand issues, and highlights the discrepancy between forecasted and actual inflation rates. The discussion also covers the risks of policy mistakes, emphasizing the importance of balancing interest rate adjustments to manage inflation expectations effectively.

What are the two potential interest rate changes the Central Bank is considering?

• 0.75% or 1.00%

• 1.00% or 1.25%

• 0.50% or 0.75%

• 0.25% or 0.50%

Which of the following is NOT mentioned as a cause of the current inflation?

• Fuel prices

• Meat and eggs

• Technology products

• Restaurant prices

What was the forecasted year-on-year inflation rate compared to the actual rate?

• 7.9% forecasted, 8.7% actual

• 7.5% forecasted, 8.0% actual

• 8.0% forecasted, 8.5% actual

• 8.5% forecasted, 9.0% actual

What is a potential risk if the Central Bank raises interest rates too little?

• Disanchored inflationary expectations

• Anchored inflationary expectations

• Increased unemployment

• Deflationary expectations

Why might it be easier to correct if the Central Bank raises rates too much?

• Future policy meetings can adjust

• Inflation will decrease automatically

• Supply will stabilize

• Demand will increase