BSP raises its benchmark policy rate by 50 bps
The Bangko Sentral ng Pilipinas (BSP) recently raised its benchmark interest rate by 50 basis points (bps) to 3.75%, with room for additional hikes, as the Philippines battles inflation.
Additionally, the rates on the overnight deposit and lending facilities were also increased to 3.25% and 4.25%, respectively.
So far this year, the central bank has raised rates by a total of 175 bps.
BSP Governor Felipe M. Medalla said that this move was done “to anchor inflation expectations and avoid a further breach in the inflation target over the policy horizon.”
The bank also raised its 2022 inflation outlook to 5.4%, beyond the central bank’s two to four per cent target band.
Meanwhile, the 2023 and 2024 inflation projection was lowered to four per cent and 3.2%, respectively.
Medalla stated that the country’s inflation target “remains at risk over the policy horizon owing to broadening price pressures. Elevated inflation expectations likewise highlight the risk of further second-round effects.”
The BSP chief added that inflation is expected to peak in October or November this year.
Related news
- PH Senator: Hybrid work improves productivity and lessens expenses · 19 Aug
- Filipinos most confident in tech-driven growth among ASEAN · 19 Aug
- Foreign investment pledges jumped 105% in Q2 · 19 Aug
Disclosure: Outsource Accelerator uses AI tools in the backend of its editorial workflow. Every article is reviewed and verified by a human editor before publication.
Stay ahead of the outsourcing industry. Join thousands of business leaders who rely on Outsource Accelerator for the news, trends, and expert insights that matter. Subscribe to our free newsletter and never miss an update.
