Philippines hikes rate for first time since 2018 on price risks

Governor Benjamin Diokno termed the increase “timely” and one that will help arrest second-round effects

MANILA: The Philippine central bank raised its key interest rate for the first time since 2018 to combat South-East Asia’s second-fastest inflation.

Bangko Sentral ng Pilipinas (BSP) increased the benchmark rate by 25 basis points to 2.25%, it said in a statement yesterday, as forecast by 14 of 21 economists in a Bloomberg survey. The rest forecast no change.