Philippine central bank raises rates for first time in over two years. The Bangko Sentral ng Pilipinas increased its benchmark reverse repurchase rate by 25 basis points to 4.5% Thursday, citing deteriorating inflation outlook driven by Middle East conflict and surging global energy prices. The decision ends an easing cycle that began August 2024. Inflation breached the central bank's 2%-4% target in March, reaching fastest pace in nearly two years as oil prices drove up transport, food, and utility costs. The peso weakened 0.5% against the dollar following the announcement, trading at 60.40. The Philippines imports nearly all oil from the Middle East, making it vulnerable to geopolitical shocks. Despite the rate hike, officials warned headline inflation is expected to exceed targets through 2027.
Post from MarketNews_en
Log in to interact with content.