The Philippine central bank raised its policy rate 25bps to 5% on Thursday — the
third consecutive hike — citing inflation running about twice its target. The
move matched market expectations. Governor Eli Remolona told lawmakers the bank
stands ready to act to meet its inflation mandate but cannot control oil-driven
price pressures. Higher rates may lend some support to the peso, which has
fell nearly 5% YTD and is the worst-performing Asian EM currency this month,
pushing up import costs.
