Economics
Philippines Raises Key Rate on Inflation Risks, Peso Slump
- BSP hikes benchmark interest rate by 25 basis points to 2.5%
- Raises 2022 inflation forecast to 5%, above its target range
Local produce on display at a market in Bacolod, the Philippines. Inflation is accelerating at its quickest in more than three years.
Photographer: Veejay Villafranca/BloombergThis article is for subscribers only.
The Philippine central bank increased its key interest rate for a second straight meeting and raised its inflation forecast, continuing a gradual pace of normalization while it faces a slumping currency.
Bangko Sentral ng Pilipinas raised the benchmark rate by 25 basis points to 2.5%, it said in a statement on Thursday, as forecast by 17 of 25 economists in a Bloomberg survey. The rest saw a half-point increase.