TIGHTER FINANCIAL conditions may curb demand for bank loans for the rest of the year and in 2027, Fitch Solutions unit B MI said.
In a report on Monday, BMI said weak economic activity and interest rate hikes by the Philippine central bank may increasingly weigh on credit growth.
“(We) expect loan growth to slow towards yearend as tighter financial conditions and weak economic activity dampen demand, before easing further to 9.0% by end-2027,” BMI said.
The Monetary Board in August raised the benchmark rate by 25 basis points (bps) to 5% in a preemptive move to rein in inflation risks from the severe El Niño episode set to last until next year, as well as the wage hike and global oil price swings.
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