BSS :
The Philippine central bank announced a surprise interest rate hike Thursday, raising borrowing costs for the third straight month and warning more could follow as officials try to rein in surging energy and food prices.
The move follows similar increases around the world as war in Ukraine and supply disruptions fan inflation and increase the financial strain on households and businesses.
Bank governor Felipe Medalla, who was appointed recently by President Ferdinand Marcos Jr, said the monetary board had agreed to raise its key rate by 75 basis points to 3.25 percent, effective immediately.
Overnight deposit and lending facilities were increased by the same amount to 2.75 percent and 3.75 percent respectively.
“By taking urgent action, the monetary board aims to anchor inflation
expectations further and temper mounting risks to the inflation outlook,” Medalla said.
“In particular, policy action is intended to help manage spillovers from
other countries that could potentially disanchor inflation expectations.”
