Philippine Central Bank Lifts Rate 50 Bps to 5.50% as Peso Hits Record Low
Updated
Updated · Bloomberg · Oct 22
Philippine Central Bank Lifts Rate 50 Bps to 5.50% as Peso Hits Record Low
3 articles · Updated · Bloomberg · Oct 22
Summary
Bangko Sentral ng Pilipinas raised its reverse repurchase rate by 50 basis points to 5.50%, a move only 1 of 25 economists had expected.
The jumbo increase was aimed at curbing resurgent inflation and shoring up the peso after the currency fell to a record low.
BSP also signaled it is ready to tighten further, extending a rate-hike cycle that has already pushed borrowing costs to their highest in nearly two years.
September inflation was running at 7.2%—well above the 3% target—keeping pressure on policymakers as fuel costs and broader price shocks persist.