The Central Bank of the Philippines raised interest rates by 0.25% to 4.75% for the second consecutive time, following inflation remaining above its target range, despite easing tensions in the Middle East.
On June 18, 2569 at 13.30:XNUMX p.m. The Central Bank of the Philippines (BSP) raised its policy interest rate for the second consecutive time. To cope with persistently high inflationary pressures, even after the United States and Iran reached a temporary agreement that eased tensions in the Middle East and reopened the Strait of Hormuz.
The BSP's Monetary Policy Committee voted to raise the reverse repurchase rate by 0.25% to 4.75% at its meeting on Thursday, in line with most economists' expectations in a Bloomberg survey. Some analysts had predicted a rate hike as high as 0.50%.
The decision reflects the caution of Asian central banks, which continue to prioritize controlling inflation, even as energy supply risks begin to ease following the agreement between the United States and Iran to reopen the Strait of Hormuz, a vital global oil shipping route.
Earlier, the Bank of Japan (BOJ) raised interest rates on Tuesday, signaling a continued tightening of monetary policy. Analysts expect the Indonesian central bank to follow suit.
The Philippines is one of the countries most affected by energy prices, as it imports almost all of its oil from the Middle East. Although the latest inflation rate slowed to 6.8%, it remains significantly higher than the central bank's target range of 2-4%.
The Philippine government Also, a warning that... It could take up to a year for domestic fuel prices to return to pre-war levels in the Middle East.
Meanwhile, the Federal Reserve (Fed) decided to keep interest rates unchanged at its latest meeting, but many Fed officials still see the possibility of at least one more rate hike in 2027, which could further strengthen the dollar.
Although the Philippine peso recovered from its record low of 61.75 pesos per dollar earlier this month, it remains weak by about 2.7% since the beginning of the year, reflecting pressure from global financial conditions and high energy costs.
refer : www.bloomberg.com
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