The Bangko Sentral ng Pilipinas (BSP) took off-cycle action today, hiking benchmark interest rates by 25 basis points (bps) to 6.5% to re-anchor inflation expectations.
BSP Governor Eli M. Remolona Jr. said the Monetary Board raised its target repurchase rate to 6.50%, effective immediately, from 6.25%.
Rates on the overnight deposit and lending facilities were also hiked by 25 bps to 6% (from 5.75%) and 7% (from 6.75%), respectively.
The BSP’s off-cycle rate hike came ahead of its regular policy meeting scheduled on Nov. 16.
With the latest hike, the Monetary Board has raised benchmark interest rates by a total of 450 bps since May 2022.
This was also the central bank’s second unscheduled policy move during this tightening cycle.
Under the leadership of then-BSP Governor Felipe M. Medalla, the Monetary Board surprised markets by raising rates by 75 bps to 3.25% on July 14, 2022. — Keisha B. Ta-asan