MANILA — The Philippine central bank raised its key interest rate by 50 basis points to 5.50% on Thursday, its fourth consecutive increase and larger than the market expected.
All 27 economists in a Reuters poll expected the Bangko Sentral ng Pilipinas to hike its benchmark rate PHCBIR=ECI by a quarter of a percentage point.
- The Bangko Sentral ng Pilipinas said its action would make monetary policy appropriately restrictive
- It said it is ready to take further monetary policy action when necessary
- All 27 economists in a Reuters poll expected the central bank to raise its benchmark rate PHCBIR=ECI by 25 basis points, bringing cumulative tightening since April to 100 basis points
- Annual inflation accelerated to 7.2% in September from August’s 6.1% due to increases in the prices of rice, electricity, fuel and transport
- The economy grew 2.3% in the second quarter from a year earlier, its weakest pace since 2021, due to a slump in construction and softer domestic demand
- The Philippine peso strengthened to 63.311 per US dollar after the interest rate hike
- The central bank next meets on December 17 to review policy
—Reporting by Karen Lema, Mikhail Flores and Nestor Corrales; Editing by David Stanway and Christopher Cushing
