By Kosaku Narioka
The Philippine central bank unexpectedly raised its benchmark interest rate in a bid to help contain inflation.
The Bangko Sentral ng Pilipinas on Thursday increased its benchmark overnight borrowing rate by 75 basis points to 3.25% and its corresponding lending rate by the same amount to 3.75%.
Gov. Felipe Medalla said significant tightening is needed due to signs of sustained, broadening price pressures.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
By Kosaku Narioka
The Philippine central bank unexpectedly raised its benchmark interest rate in a bid to help contain elevated inflation.
The Bangko Sentral ng Pilipinas on Thursday increased its benchmark overnight borrowing rate by 75 basis points to 3.25%, and its corresponding lending rate by the same amount to 3.75%.
Governor Felipe Medalla said significant tightening was needed because of signs of sustained, broadening price pressures.
The country’s consumer-price index in June rose 6.1% from a year earlier, well above the central bank’s inflation target range of 2%-4%. First-quarter gross domestic product increased 8.3% from a year earlier and surpassed levels seen prior to the pandemic.
The Philippine central bank in May raised its policy rate for the first time in three and a half years, by 25 basis points, and followed with another 25-basis-point increase in June.
Central banks globally are responding to rising inflation caused by a recovery from the Covid-19 pandemic and the Russia-Ukraine war.
Earlier Thursday, the Monetary Authority of Singapore tightened monetary policy, in an unexpected move.
Write to Kosaku Narioka at kosaku.narioka@wsj.com