The Philippine central bank yesterday raised interest rates for the first time in almost two years as it battles to keep inflation in check.
Overnight rates, which have been kept at record-lows since July 2009, were raised 25 basis points to 4.25 percent for borrowing and 6.25 percent for lending.
The bank's policy-making Monetary Board decided at yesterday’s meeting that the hikes were needed to keep within this year's inflation target of 3.0-5.0 percent, governor Amando Tetangco told reporters, according to Dow Jones Newswires.
Prices surged 4.3 percent in February from 3.5 percent in January, previous government data show, while inflation averaged 3.8 percent last year.*AFP