At its meeting on 5 May, the Central Bank raised interest rates by 25 basis points to 4.50%. The move constituted the second increase in interest rates since the policymakers began tightening at their previous meeting on 24 March. The decision was expected by the market and follows other central banks in the region, which are attempting to temper increasing inflationary pressures spurred by higher commodity and energy prices. In April, headline inflation increased to a 12-month high of 4.5%. The Central Bank attributed cost-push inflation, originating from higher oil prices, as the main source of risk to reaching its 2011 inflation target rate of 4.0% (1.0% tolerance margin). Furthermore, according to the Bank, the move aims to ?rein in inflation expectations further and contain second-round effects?. Regarding developments on the real side of the economy, policymakers stated that the economy is expected to grow above its potential, bolstered by high production levels and a pick-up in private investment, which continues to be boosted by strong remittances from abroad. The next monetary policy meeting is due to be held on 16 June.
Philippines Monetary Policy
Central Bank continues to pursue tighter monetary policy
May 5, 2011
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Philippines Economic News
October 17, 2016
In August, cash remittances from Overseas Filipino Workers (OFW) grew 16.3% from the same month of last year to USD 2.3 billion.
October 13, 2016
The Philippines’ exports declined for the seventeenth consecutive month in August mainly due to weak demand from Japan, Hong Kong and the USA. Exports dropped an annual 4.4%, which followed July’s sharper 13.0% decrease.
October 6, 2016
In September, consumer prices rose 0.2% from the previous month, marginally up from August’s 0.1% increase.
September 22, 2016
At its meeting on 22 September, the Central Bank decided to leave the Overnight Reverse Repurchase facility (RRP) unchanged at 3.00% as the markets had expected.
September 15, 2016
In July, cash remittances from Overseas Filipino Workers (OFW) dropped 5.4% over the same month last year to USD 2.1 billion.