Business News Asia
The Philippine central bank signaled Thursday that it plans to raise its benchmark interest rate by 75 basis points at its monetary policy meeting later this month. This is in line with the Federal Reserve’s recent financial tightening.
The Bangko Sentral ng Pilipinas governor said in a statement that the Fed’s rate hike supports the BSP’s stance to raise the policy rate by the same amount at its next meeting on November 17.
“BSP considers it necessary to maintain interest rate spreads ahead of the latest rate hike by the Fed, in accordance with the price stability and the need to reduce any impact against the country’s exchange rate in the Fed’s latest rate hike,” he said.
By matching the Fed’s rate hikes, Medalla said, the BSP is reaffirming its strong commitment to stabilizing prices by aggressively addressing inflationary pressures caused by local and global factors.
The BSP will take the necessary measures to bring inflation on a consistent path to its targets. Headline inflation is expected to return to the target range of 4-4% in the second half of 2023 and throughout 2024.