Philippine central bank hikes rates by 50 bps

MANILA (Philippine Daily Inquirer/Asia News Network): The Monetary Board again raised the Bangko Sentral ng Pilipinas key policy rate by 0.5 percentage point (50 basis points) as widely expected, to 4.25 per cent, amid still higher inflation forecasts.

With the rise in the BSP’s overnight borrowing rate that takes effect on Sept 23, the interest rates on the overnight deposit and lending facilities were also raised by as much to 3.75 per cent and 4.55 per cent, respectively.

Since starting the normalisation of its policy stance last May, the MB has raised the policy rate four times by a total of 2.25 ppts from an all-time low of 2 per cent.

BSP Deputy Governor Francisco Dakila Jr said in a briefing full-year average inflation was expected to be higher than previously forecast, now seen at 5.6 per cent from 5.4 per cent as projected last August.

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Philippines , bank , central , rate , hike


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