Rising inflation prompted the Central Bank of the Philippines to raise the policy rate by 50 basis points on August 8, noting baseline forecasts had “shifted” since its last monetary policy meeting.

“The Monetary Board deemed stronger monetary action to be necessary to rein in inflation expectations and prevent sustained supply-side price pressures from driving further second-round effects,” the central bank said.

This is the third, and largest, rate hike the central bank has made in 2018.

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