NewsHK
Second-round inflation dynamics are shaping the rate debate across Southeast Asia, and the Philippine central bank is the latest to signal a shift in that assessment.
An official at the Bangko Sentral ng Pilipinas stated that current analysis indicates stronger second-round effects on inflation.
Second-round effects describe how an initial price shock feeds into wages and services costs, extending the inflation cycle beyond the original impulse. First-round effects typically ease as the underlying shock fades.
Second-round effects become embedded in expectations and require more sustained policy pressure to contain, which is why a central bank's read on this channel carries direct implications for where rates go.
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