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BSP Hikes Rate as War Sends Inflation Past Target - BusinessWorld Online
The move follows a March inflation jump to 4.1% and a higher outlook for 2026 and 2027, the central bank said.
- The Bangko Sentral ng Pilipinas raised its key interest rate to 4.5% on Thursday, April 23, marking the first increase in two years as the Middle East conflict drives up energy costs.
- March inflation surged to 4.1%, the fastest pace in 20 months, breaching the BSP's 2%-to-4% target as the Middle East crisis fueled higher fuel and transport prices.
- Monetary Board members described the hike as "timely and preemptive policy action" intended to anchor inflation expectations and contain second-round effects without derailing medium-term recovery.
- The peso traded 0.5% lower against the US dollar at 60.40 following the decision, while the BSP warned average headline inflation will breach the 2%-to-4% target for 2026 and 2027.
- BSP Governor Eli Remolona Jr. warned the inflation outlook has "deteriorated" as the conflict raises domestic fuel and food prices, signaling readiness to act if expectations become "de-anchored" from targets.
11 Articles
11 Articles
PSEi slips as BSP switches to hawkish mode
MANILA, Philippines — Local stocks extended losses on Thursday as the prolonged Middle East war and the local central bank’s interest rate hike gnawed on investor sentiment. The benchmark Philippine Stock Exchange Index (PSEi) dipped 0.1 percent or 5.75 points, to close at 5,983.81, slipping below the 6,000 level. READ: Asian stocks sink, oil rises as US-Iran no closer to peace talks Luis Limlingan, head of sales at stock brokerage house Regina …
BSP tightens policy in the Philippines as inflation surge overrides growth concerns
The Bangko Sentral ng Pilipinas raised its policy rate by 25bp to 4.50% on April 23, in the process demonstrating the prioritisation of inflation risks after a sharp rise in price pressures throughout March.
BSP hikes policy rate to 4.5% as Middle East crisis ‘deteriorates’ inflation outlook
MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) on Thursday, April 23, raised the country’s key interest rate to 4.5% as the ongoing conflict in the Middle East pushed local inflation higher. This is the first time that the monetary authority tightened rates in two years. BSP Governor Eli Remolona Jr. said that the central bank’s outlook on inflation has “deteriorated” as the Middle East conflict raises domestic fuel and food prices.…
BSP hikes rate as war sends inflation past target - BusinessWorld Online
The Philippine central bank increased its benchmark interest rate for the first time in more than two years, warning of a deteriorating inflation outlook as the Iran war drives up energy prices. The Bangko Sentral ng Pilipinas raised its target reverse repurchase rate by a quarter of a point to 4.5% on Thursday, as predicted by 15 of 30 economists in a Bloomberg News survey. The rest expected no change. “The inflation outlook has deteriorated am…
Philippine central bank hikes policy rate by 25 basis points
Manila: The Philippine central bank hiked its key interest rate to 4.50% on Thursday to keep a lid on rising inflation, with concerns over spiralling fuel costs overriding the need to keep growth on track.The Bangko Sentral ng Pilipinas said inflation is expected to reach 6.3% this year, and governor Eli Remolona warned that more hikes could follow, with the country's easing cycle now over."I think further rate hikes are part of the calculat…
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