The Philippine central bank is considering an off-cycle interest rate hike before its next scheduled meeting on June 18, Governor Eli Remolona told One News in an interview on Friday.
Bangko Sentral ng Pilipinas (BSP) raised its benchmark interest rate by 25 basis points to 4.50% in April, but Remolona said that it may not have been enough to rein in mounting price pressures.
The Philippines, heavily dependent on imported oil, has faced inflation concerns following sharp increases in global fuel prices linked to tensions in the Middle East. The peso has also come under pressure, losing around 4.6% against the U.S. dollar this year.
The BSP has already held an unscheduled policy meeting on March 26, becoming the first central bank in Asia to conduct an off-cycle rate increase this year.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)