The Philippine central bank lifted its benchmark interest rate to a 14-year high on Thursday to tame the quickest inflation in as many years.
Bangko Sentral ng Pilipinas increased the overnight reverse repurchase rate by 50 basis points to 5.5%, as predicted by all 21 analysts in a Bloomberg survey. That’s the third half-point move in this tightening cycle, and follows a 75 basis-point increase at the last meeting.
Although consumer price gains at 8% in November is double the ceiling of the BSP’s 2%-4% target band, the BSP has room to slow the pace of increases following the Federal Reserve’s downshift, which should help take the pressure off the peso.
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