Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. said Tuesday an off-cycle interest rate hike may happen as early as Thursday this week amid the rising inflationary pressures.
He did not give a hint on the magnitude of the off-cycle rate increase. “That is too much specific,” he said. “Amid the recent/lingering geopolitical risks on the Israel-Hamas war since Oct. 7, 2023 with a potential risk of widening in the Middle East, especially if it could involve Iran and other oil-producing countries in the region that could lead to higher global oil prices, inflation and policy rates,” Ricafort said.
“We’re carefully watching the risks and remain hawkish. Before we consider any relaxation on the policy stance, we need to be very confident that inflation has been restored to the target,” Dakila said. “Managing inflation is the responsibility not only of the central bank. We share it with the rest of the government, particularly the fiscal authorities, especially at a time when issues driving the inflation rate are supply side-driven,” Tolentino said.