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Philippines Surprises With Big Rate Hike to Cool Inflation

  • Key rate raised by 75 basis points, biggest in nearly 22 years
  • Governor says ready to take further action if needed
Bloomberg business news
Philippine Central Bank Unexpectedly Hikes Key Rate by 75 Basis Points
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The Philippine central bank unexpectedly raised its key interest rate by 75 basis points, after policy makers previously downplayed the need for large hikes to quell the fastest inflation in nearly four years. 

Bangko Sentral ng Pilipinas raised the overnight reverse repurchase rate to 3.25%, effective immediately, Governor Felipe Medalla said in a Facebook Live on Thursday. The bank was scheduled to review monetary policy on Aug. 18 after its rate hike in June.