Bangko Sentral ng Pilipinas Raises Key Rate for Third Consecutive Meeting Amid Persistent Inflation

• BSP hiked rates by 25bps to 5.00% for third consecutive meeting.
• Decision driven by persistent inflation and El Niño risks.
• Central bank maintains hawkish stance to curb price pressures.

The Bangko Sentral ng Pilipinas (BSP) raised its benchmark interest rate by 25 basis points to 5.00 percent on Thursday, marking the third consecutive meeting with a rate hike. This decision was largely in line with market expectations. The central bank cited persistent inflationary pressures, including concerns over El Niño-related food inflation and larger-than-expected wage increases, as primary drivers for its hawkish stance. Policymakers reiterated their commitment to slowing inflation, which currently runs at twice the target rate, despite the economy’s status as a regional laggard.