MANILA, Philippines — Inflation likely accelerated for the second straight month in March, mainly driven by high rice prices, prompting the Bangko Sentral ng Pilipinas to keep borrowing costs unchanged at its next policy review in April, analysts said.
BSP Governor Eli Remolona Jr. said inflation would likely quicken to 3.9 percent in March. If realized, it would mark the second straight month that inflation went up on a monthly basis. The Monetary Board has kept interest rates on hold after a 25-basis-point, off-cycle hike in October 2023. The central bank has tightened borrowing costs by 450 basis points between May 2022 and October 2023, bringing the key rate to a near 17-year high of 6.50 percent.
Data from the Philippine Statistics Authority showed rice inflation rose 23.7 percent in February from the previous month’s 22.6 percent. It marked the highest since the 24.6 percent recorded in February 2009. The DOF chief also did not discount the likelihood of inflation breaching four percent in the coming months.