BSP: Off-cycle rate hike possible within the week

By Anna Leah Gonzales

October 24, 2023, 7:45 pm

MANILA – The Monetary Board is considering an off-cycle policy rate hike this week, according to Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. on Tuesday.

"We will have a meeting and we will look at the data. If the data says inflation will go up very significantly and there’s a risk of affecting inflationary expectations, then we may go for an off-cycle hike as early as Thursday,” Remolona told reporters.

The Monetary Board kept for the fourth consecutive rate setting meeting the central bank’s key rates, with the target reverse repurchase rate at 6.25 percent.

Earlier this month, Remolona said they are not ruling out another 25 basis points rate hike, adding that they are keeping a close eye on the inflation data.

Headline inflation accelerated to 6.1 percent in September.

Year-to-date, inflation was at 6.1 percent which is way outside the central bank's 2 percent to 4 percent target range.

The BSP forecasts inflation to settle at 5.8 percent this year and to 3.5 percent next year. (PNA)