the republic logo

Philippine central bank raises overnight borrowing rate to pre-empt rise in inflation

Share/Save/Bookmark

MANILA, Philippines — The Philippine central bank has raised its key interest rate by a quarter percentage point to counter inflation.

The rate the central bank charges commercial banks for overnight borrowing was Thursday raised to 5.75 percent.

Central bank Gov. Amando Tetangco says the decision was "a pre-emptive response to signs of inflation pressures and elevated inflation expectations."

He says latest forecasts for inflation have shifted closer to the higher end of the 2015 target range of 2 to 4 percent.

Tetangco cites higher food prices, short-term volatility in oil prices and pending power rate and transport fare increases as adding to risks.

Last month's Inflation rate was 4.4 percent, within government's 2014 target.

Think your friends should see this? Share it with them!

All comments are moderated before posting. Your email address must be verified with Disqus in order for your comment to appear.
View our commenting guidelines and FAQ's here.

Story copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Feedback, Corrections and Other Requests: AP welcomes feedback and comments from readers. Send an email to info@ap.org and it will be forwarded to the appropriate editor or reporter.


We also have more stories about:
(click the phrases to see a list)

Category:

Follow The Republic:

All content copyright ©2014 The Republic, a division of Home News Enterprises unless otherwise noted.
All rights reserved. Privacy policy.