BSP hikes key rate by 0.5 ppt to 5.5%

The cost of borrowing money in the Philippines will rise further as the Monetary Board again raised the Bangko Sentral ng Pilipinas key policy rate, this time by 0.5 percentage point to 5.5 percent after further uptick in inflation.

This was announced 12 hours after the United States Federal Reserve said it raised the US federal funds rate by as much to a range of 4.25 percent to 4.5 percent.

“The Monetary Board arrived at its decision after noting the further uptick in headline and the sharp rise in core inflation in November amid pent-up demand,” Medalla said.

“Moreover, upside risks continue to dominate the inflation outlook up to 2023 while remaining broadly balanced in 2024,” he added.