The Bangko Sentral ng Pilipinas (BSP) raises its key policy interest rate by 50 basis points to 5.50%, marking its fourth consecutive increase. Interaksyon reports the move is larger than market expectations, while also noting a Reuters poll where all 27 economists expected only a quarter-point hike. Channel NewsAsia similarly frames the decision as larger than expected, linking it directly to the need to combat inflation.
Inquirer.net adds further context on the inflation backdrop and the immediate implications for markets. It says only two of 20 economists it polled correctly predicted the half-point increase, following inflation rising to a three-year high of 7.2% in September. Inquirer also reports cumulative rate hikes since April totaling 125 basis points, as stubborn inflation pressures—citing oil prices and monsoon-related supply disruptions—remain.
Other Inquirer reporting looks beyond the decision itself. It says GlobalSource Partners urges consideration of a “jumbo” hike to anchor inflation expectations. It also reports Nomura’s view that planned cuts to banks’ reserve requirements are not an immediate priority because the BSP is still focused on raising rates to tame inflation.
