Philippines: Central Bank Raises Interest Rates to 5.25 Percent
Bangko Sentral ng Pilipinas (BSP) raised its key interest rate by 25 basis points to 5.25%. BSP Governor Amando Tetangco announced that the central bank is ready to take further actions to control inflation.
In its assessment, the Monetary Board noted that emerging baseline forecasts, which reflect more recent data on inflation and output, indicate a likely breach of the inflation target for 2008. The BSP forecasts 2008 average inflation to reach 7.0-9.0 percent. For 2009, average inflation is expected to decline to 4.0-6.0 percent.
This increase in interest rates was the first increase since October 2005. Today Bank Indonesia announced also a 25 basis point increase for the key interest rate to 8.5%.
[…] as a net importer of rice and oil are highly effected the skyrocketing prices of these commodities. Bangko Sentral ng Pilipinas increased the key interest rate by 25 basis points to 5.25% to fight further increase in inflation rates. addthis_url = […]
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