• The “monetary board deems it necessary to take aggressive monetary action to bring headline inflation back to within target as soon as possible,” Governor Felipe Medalla said at a briefing to announce the decision. It’s a “low probability event” that the terminal rate will be the same as the current rate, he said.
  • The BSP remains steadfast in its primary mandate of ensuring price stability, Medalla said. The central bank remains ready to take action toward that end, he said. Yet even with higher borrowing costs, the economy is still seen as among Asia’s bright spots, with analysts expecting gross domestic product to grow 7% this year. The government this month lowered its 2023 GDP forecast amid a worsening global outlook.