BSP hikes benchmark rate by 50 basis points amid inflation risks

MANILA — The Bangko Sentral ng Pilipinas hiked its benchmark rate by 50 basis points on Thursday, citing heightened inflation risks. 

The BSP’s target reverse repurchase rate is now at 5.5 percent, up from 5 percent. Inflation hit 7.2 percent in September as food and fuel prices continued to rise. 

“Inflation is seen to accelerate further in the coming months. Average headline inflation is expected to remain high in 2027 and approach our 3.0-percent target in 2028. Core inflation is likewise projected to continue to rise, indicating underlying price pressures,” the BSP said.

The central bank noted that the conflict in the Middle East has driven global oil prices higher, and that recent fare hikes are also likely to impact inflation.

“El Niño conditions also continue to pose a risk to agricultural production and prices,” the BSP said. 

More details to follow.