Philippines Hikes Rate Again to Temper War-Driven Inflation (opens original article in a new tab)

The Philippine central bank increased its benchmark interest rate for the second consecutive meeting to 4.75% to combat persistent inflationary pressures, with projections showing inflation may exceed its target in the coming years despite an interim US-Iran peace deal.

• Philippine central bank raised benchmark interest rate to 4.75% for second consecutive meeting
• Inflationary pressures remain strong with core inflation indicating broadening price pressures
• BSP projects average headline inflation to exceed 4% tolerance ceiling in 2026 and 2027
• Philippines imports nearly all oil from Middle East, affected by war-driven inflation
• Philippine peso down 2.8% this year but recovered from record low of 61.75 against dollar
• Asia's central banks are cautious with monetary tightening despite US-Iran peace deal