Central Bank of the Philippines raises interest rate to help curb inflation

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By Kosaku Narioka


The central bank of the Philippines unexpectedly raised its benchmark interest rate in an effort to contain inflation.

The Bangko Sentral ng Pilipinas on Thursday raised its benchmark overnight borrowing rate by 75 basis points to 3.25% and its corresponding lending rate by the same amount to 3.75%.

Governor Felipe Medalla said significant tightening was needed due to signs of sustained and growing price pressures.


Write to Kosaku Narioka at [email protected]


By Kosaku Narioka


The central bank of the Philippines unexpectedly raised its benchmark interest rate in an effort to contain high inflation.

The Bangko Sentral ng Pilipinas on Thursday raised its benchmark overnight borrowing rate by 75 basis points to 3.25%, and its corresponding lending rate by the same amount to 3.75%.

Governor Felipe Medalla said significant tightening was needed due to signs of sustained and growing price pressures.

The country’s consumer price index in June rose 6.1% from a year earlier, well above the central bank’s inflation target range of 2% to 4%. First-quarter gross domestic product rose 8.3% year-on-year and surpassed pre-pandemic levels.

In May, the central bank of the Philippines raised its policy rate for the first time in three and a half years, by 25 basis points, and followed up with another increase of 25 basis points in June.

Central banks around the world are reacting to rising inflation caused by a recovery from the Covid-19 pandemic and the Russian-Ukrainian war.

Earlier Thursday, the Monetary Authority of Singapore tightened its monetary policy, in an unexpected move.


Write to Kosaku Narioka at [email protected]

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