The Monetary Board again raised the Bangko Sentral ng Pilipinas key policy rate by 0.5 percentage point (50 basis points) as widely expected, to 4.25 percent, amid still higher inflation forecasts.
With the rise in the BSP’s overnight borrowing rate that takes effect on Sep. 23, the interest rates on the overnight deposit and lending facilities were also raised by as much to 3.75 percent and 4.55 percent, respectively.
Since starting the normalization of its policy stance last May, the MB has raised the policy rate four times by a total of 2.25 ppts from an all-time low of 2 percent.
BSP Deputy Governor Francisco Dakila Jr. said in a briefing full-year average inflation was expected to be higher than previously forecast, now seen at 5.6 percent from 5.4 percent as projected last August.