THE central bank further tightened monetary policy to tame inflation by further raising its policy interest rates on Wednesday, June 20.
In a statement, the Monetary Board said it decided during its meeting Wednesday to raise the interest rate on the Bangko Sentral ng Pilipinas (BSP) overnight reverse repurchase (RRP) facility by another 25 basis points to 3.50 percent, effective Thursday, June 21.
The interest rates on the overnight lending and deposit facilities were likewise raised accordingly.
Jonathan Ravelas, first vice president and chief market strategist of BDO Unibank Incorporated, said the decision to raise the policy rate shows that "policy makers have turned more serious about taming its soaring inflation."
The Philippines hiked its interest rates anew by 25bps to 3.50% Wednesday for the second-straight meeting, giving bonds and the peso some help by demonstrating policy makers have turned more serious about taming its soaring inflation— Jonathan Ravelas (@ravelasj) June 20, 2018