Philippine central bank’s off-cycle rate hike still on the table: governor

AN OFF-CYCLE monetary policy rate hike is on the table, and could happen as early as this Thursday’s (Oct 26) meeting of the monetary authorities, Philippine central bank governor Eli Remolona said.

“If the data says inflation will go up very significantly and there’s a risk of affecting inflationary expectations, then we may go for an off-cycle hike,” Remolona told reporters on Tuesday.

The central bank had earlier flagged an option to raise benchmark interest rates by 25 basis points to battle inflation, which accelerated to a four-month high of 6.1 per cent in September.

The policy-making Monetary Board meets every Thursday for banking and regulatory matters. The next rate-setting meeting is set for Nov 16, days after the government releases key economic growth and inflation data, and the US Federal Reserve makes its monetary policy decision.

Year-to-date inflation stood at 6.6 per cent, way above the central bank’s 2 per cent-4 per cent target.

In September, the central bank maintained benchmark rates, now called target reverse repurchase rates, at 6.25 per cent. REUTERS