February 4, 2023

Filipino Guardian

Sentinels of Filipino Free Press

Medalla announces more rate hikes to tame inflation – Bloomberg TV

BW FILE PHOTO

Bangko Sentral ng Pilipinas (BSP) is likely to need to hike rates further at its next two meetings to ensure inflation returns to the 2-4% target range next year, its governor said on Friday.

BSP Governor Felipe M. Medalla said the likelihood that the central bank would not raise interest rates at its next meetings was “extremely slim”.

The central bank expects inflation, currently at a 14-year high of 8%, to return to the 2-4% range in the second half of next year. “We need to do more to ensure this happens,” Mr Medalla told Bloomberg TV.

The central bank raised its overnight reverse repurchase rate to 5.50% on Thursday, its seventh rate hike this year. It meets every six weeks. – Reuters