Philippine central bank raises policy rate to 5.5%

Edited by Mica Finch · AI newsroom · Times in UTC

Updates appear here as they are verified. Last update Oct 22, 10:24 AM UTC

Half-point increase exceeds Reuters poll forecasts

The Philippine central bank raised its policy rate by half a percentage point to 5.5% on October 22, its fourth consecutive increase, Reuters reported. All 27 economists in Reuters’ poll had expected a quarter-point rise. GlobalSource Partners had nevertheless argued for the larger move, as The Philippine Star reported before the meeting. The central bank cited broadening price pressures and raised its 2027 inflation forecast to 6.0% from 5.4%. Higher borrowing costs could also constrain investment and consumption while domestic demand is weak, a tradeoff described in the Star’s report. Governor Eli Remolona left further increases open without announcing another decision. The timestamp records CNA’s publication, not a verified decision time.

Reuters via CNA: Philippine central bank delivers larger-than-expected 50 bps hike to combat inflation · The Philippine Star: GlobalSource makes case for bigger 50-bp BSP rate hike