Philippines tightens policy as inflation fight continues
Analysts believe decision marks end of BSP’s current policy cycle
The Central Bank of the Philippines (BSP) has raised rates by 25 basis points as the country’s economy continues to feel the impact of oil price volatility resulting from the Iran war.
The central bank said today (August 27) that its benchmark policy rate would be increased to 5%. “With today’s policy action, average headline inflation is still seen to breach the [4%] tolerance ceiling in 2026 and 2027,” its statement read.
The BSP said core inflation also continued to indicate “broadening price
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: www.centralbanking.com/subscriptions
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com
More on Monetary policy decisions
BoK delivers second consecutive rate hike
Central bank forecasts stronger growth as inflation remains above target
Paraguay holds rates for sixth time in a row
Central bank expects inflation, currently below target, to gradually increase to 3.3% by end of year
Jamaica and Uruguay hold rates
Central banks cite deteriorating geopolitical tensions and extreme weather as upside inflation risks
Kenya, Mauritius, Namibia and Uganda all hold rates
Expert says El Niño weather event likely to drive greater rate variability in 2027
Peru holds rates for eleventh time in a row
BCRP highlights risk of escalating conflict in Middle East and more severe El Niño on inflation
RBA remains on hold and says inflation still too high
Economists predict interest rates in Australia will stay put until mid-2027
Mexico and Nicaragua hold interest rates
Banxico revises upwards its forecast for hitting 3% inflation target; while Nicaragua expects inflation to remain “low and stable”
Brazil cuts rates for a fourth time in a row
BCB’s policy statement shorter and more focused than previous decision, analyst says