The Bangko Sentral ng Pilipinas has raised its key interest rate by 75 basis points or three-quarters of a percentage point, bringing it to 3.25% effective July 14 as it cracks down on surging inflation.

BSP Governor Felipe Medalla announced the off-cycle hike on Thursday morning, also revealing the overnight deposit and lending rates have been increased to 2.75% and 3.75% respectively.

In the Philippines, inflation sizzled to 6.1% in June ― its fastest in almost four years. This brought average inflation for the first half of 2022 to 4.4%, further above the central bank’s 2-4% goalposts for the year.

The BSP chief likewise mentioned the strong growth rebound observed so far suggests the economy can handle further policy tightening.

Source: CNN Philippines