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MANILA, Philippines – Bangko Sentral ng Pilipinas (BSP) Governor Felipe Medalla said on Thursday, November 3, that the Monetary Board would match the latest 75-basis-point interest rate hike of the United States Federal Reserve to combat inflation.
Medalla said the rate hike would be imposed in their next policy meeting on November 17, around two weeks after the Fed’s decision on Wednesday, November 2.
Medalla emphasized that since the increase would be effective after their policy meeting, it would not be an “off-cycle” rate hike.
The BSP typically does not announce specific figures of rate hikes or cuts ahead of a policy meeting. At most, a BSP governor or Monetary Board member gives journalists a hint during chance interviews.
The Philippines last increased its key interest rate in September to 4.25% amid white-hot inflation.
“By matching the Fed’s rate hike, the BSP reiterates its strong commitment to its mandate of maintaining price stability by aggressively dealing with inflationary pressures stemming from local and global factors,” Medalla said.
The Philippine Statistics Authority will be announcing the latest inflation figures on Friday, November 4. The BSP expects the October rate to peak between 7.1% and 7.9%.
The Fed is undertaking its most aggressive tightening of US monetary policy in four decades amid stubbornly high inflation. Analysts expect a more dovish US central bank in its next policy decision. – Rappler.com