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The central bank’s rate hike of 12.5 basis points on Thursday was less than expected, and the monetary policymaker is expected to continue raising rates in the second half of the year to curb inflation, UBS Securities Asia Ltd economist William Deng (鄧維慎) said on Friday.
Compared with a March forecast saying the central bank would raise rates this month and in September, UBS now expects two more 12.5 basis-point hikes in September and December, Deng said in a report.
The US Federal Reserve is expected to have increased its rate by 175 basis points by the end of this year