The Philippine Central Bank (BSP) raised its key interest rate for the second straight month to curb inflation, raising the key policy rates by 25 basis points to 2.5 percent effective June 24.
The change, which had been widely anticipated by analysts, followed a 25-basis-point rise in May, the country’s first interest rate increase since 2018.
Overnight deposit and lending facilities were raised to 2.0 percent and 3.0 percent respectively, according to the Monetary Board’s statement.
“The Monetary Board noted that upside risks continue to dominate the inflation outlook up to 2023, with pressures emanating from the potential impact of higher global non-oil prices, the continued shortage in domestic fish supply, as well as pending petitions for transport fare hikes due to elevated oil prices,” it stated….