Incoming Philippine central bank governor signals June rate rise

INCOMING Philippine central bank governor Felipe Medalla signalled a possible interest-rate increase in June.

Medalla, who takes office from Jul 1, is on the “same page” as outgoing governor Benjamin Diokno in agreeing that a rate hike is likely next month, he said in a text message response to a Bloomberg News query.

Bangko Sentral ng Pilipinas (BSP) is likely to increase the key rate by another 25 basis points in the next policy meeting, Diokno said earlier this month. Medalla, a member of the monetary policy board, will serve as central bank governor until mid-2023.

The Philippines in May joined global central banks in raising borrowing costs to fight inflation. BSP is next scheduled to decide on the key rate on Jun 23. BLOOMBERG