Bank chief hints at raising interest rates to control inflation (6:41 p.m.)
MANILA — The chief of the Central bank hinted Wednesday at further raising interest rates to control inflation, which has been driven to a 14-year-high by spiraling oil and food prices.
The bank has twice raised rates, by a total of 75 basis points - to 5.75 percent for overnight borrowing rates and 7.75 percent for overnight lending rates - since annual inflation rates hit 11.4 percent in June.
Central bank Governor Amando Tetangco told journalists the bank was prepared to take “all necessary actions” to tackle high inflation and promote price stability.
He said he expected inflation to average between 9 percent and 11 percent for the entire year and peak at 12 percent before easing in the last quarter. He said inflation would remain in the double-digit through the first quarter of 2009. (AP)
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