Philippine central bank raises key interest rate by 50 basis points

MANILA, Oct 22 : The Philippine central bank raised its key interest rate by 50 basis points to 5.50 per cent on Thursday, its fourth consecutive increase and larger than the market expected.  

All 27 economists in a Reuters poll expected the Bangko Sentral ng Pilipinas to hike its benchmark rate by a quarter of a percentage point.

• The Bangko Sentral ng Pilipinas said its action would make monetary policy appropriately restrictive

• It said it is ready to take further monetary policy action when necessary

• All 27 economists in a Reuters poll expected the central bank to raise its benchmark rate by 25 basis points, bringing cumulative tightening since April to 100 basis points

• Annual inflation accelerated to 7.2 per cent in September from August's 6.1 per cent due to increases in the prices of rice, electricity, ⁠fuel and transport

• The economy grew 2.3 per cent in the second quarter from a year earlier, its weakest pace since 2021, due to a slump in construction and softer domestic demand

• The Philippine peso strengthened to 63.311 per US dollar after the interest rate hike

• The central bank next meets on December 17 to review policy