Monetary Board raises policy rate anew

MANILA. Prices of goods have continued to accelerate, with inflation increasing to 4.6 percent in May from 4.5 percent in April. Inflation expectations remain elevated due to price pressures from wage hikes and oil price increases. (SunStar File Photo)
MANILA. Prices of goods have continued to accelerate, with inflation increasing to 4.6 percent in May from 4.5 percent in April. Inflation expectations remain elevated due to price pressures from wage hikes and oil price increases. (SunStar File Photo)

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."

(MVI and Ruth Abbey Gita/SunStar Philippines)

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