BSP opts for fresh 25bp hike as inflation remains a problem
Rates will go even higher starting Friday, Nov. 16.
The Bangko Sentral ng Pilipinas (BSP) announced another 25 basis points (bp) increase in interest rates, bringing the benchmark to 4.75 percent.
The central bank said they still see inflation on the uptrend, with inflation expectations still elevated given supply-side and possible wage pressures.
“The Monetary Board deemed it necessary to respond with proactive policy action to help temper the risks to the inflation outlook, including those emanating from the continued uncertainty in the external environment amid tighter global financial conditions and trade tensions among major economies,” the BSP said in a statement.
“Nevertheless, the Monetary Board continues to emphasize the need for follow-through non-monetary measures to mitigate the impact of supply-side factors on inflation.”
This is the fifth consecutive time when rates were raised in 2018.