Philippines central bank lifts policy rate by 0.5 percentage points to 5.5%
The Bangko Sentral ng Pilipinas increased its overnight policy rate by half a point, reaching 5.5% as it intensifies its battle against persistent inflation.
In Manila, the Monetary Board of the Bangko Sentral ng Pilipinas voted to raise the benchmark overnight rate by 0.5 percentage point, setting it at 5.5%. The move exceeds market expectations and reflects the central bank’s effort to curb stubborn price pressures. Officials indicated that inflation remains above target, prompting the decisive action. The hike is expected to influence borrowing costs across the economy.
Why it matters
Higher rates affect loans, mortgages and overall economic activity, influencing everyday Filipinos and investors.
In this story
policy rateinflationinterest rate hikeovernight borrowing rateMonetary BoardPhilippinesBSPeconomic tightening
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