J.P. Morgan: If oil prices soar, the risk of interest rate hikes in the Philippines will rise.

Economists at J.P. Morgan stated in a report that if oil prices continue to rise, the Philippine central bank may face pressure to raise interest rates. The relevant authorities are considering measures such as reducing or suspending the collection of fuel consumption tax and value-added tax to cushion the impact on households, but this may delay fiscal consolidation, depending on the scale and duration of these measures. The bank mentioned that the inflation outlook remains sensitive to energy costs: if oil prices approach $105 per barrel, the inflation rate may exceed the central bank's target range of 2%-4%, leading to a potential interest rate hike.