Philippines Raises Interest Rate for a Second Time This Year

The Philippines raised its benchmark interest rate for a second straight meeting, persisting with its first tightening cycle since 2011, and said it may take further action as inflation risks stay elevated.

Bangko Sentral ng Pilipinas raised the rate it pays lenders for overnight deposits to 4 percent from 3.75 percent, it said in Manila today. The decision was predicted by 12 of 19 economists surveyed by Bloomberg News. Policy makers also increased the rate on special deposit accounts to 2.5 percent from 2.25 percent, as forecast by seven of eight analysts.