The Philippine central bank raised its benchmark interest rate by 0.50% to 4.25% at its meeting today (Sept. 22), the fifth rate hike this year, in a bid to ease inflationary pressures amid the slump in the peso.
The Philippine central bank’s rate hike was in line with analysts’ expectations.
The Bank of Philippines’ latest rate hike decision came after the U.S. Federal Reserve raised rates by 0.75% yesterday (Sept. 21) and hinted at further rate hikes, pushing the Philippine peso to a record low.
A weak peso has increased risks for the country, which relies on imports for many commodities, from fuel to rice. Inflation in the Philippines remained above the central bank’s target of 2% to 4% in August.