Philippine central bank not ruling out 25 bps rate hike in November

THE Philippine central bank is not ruling out a 25 basis points interest rate increase at its meeting next month, its governor said on Wednesday (Oct 11), after latest data showed inflation quickened for a second straight month in September.

Bangko Sentral ng Pilipinas (BSP) governor Eli Remolona said that higher interest rates have not affected the country’s growth prospects, suggesting there was room for further policy tightening.

“I would not rule out a 25 basis points rate hike,” Remolona told a press conference.

The BSP, which has kept its benchmark interest rate steady at 6.25 per cent at its last four meetings, will review its policy again on Nov 16, just a week after the government releases fresh data on third-quarter economic growth on Nov 9.

The finance and economic planning ministers had earlier expressed reservations over further increases in interest rates, with inflation being driven by supply-side factors and given the moderation in underlying price pressures. REUTERS