The Bangko Sentral ng Pilipinas (BSP) will continue hiking interest rates in 2023 as inflation remains high, central bank governor Felipe Medalla said Friday (December 16).
Medalla, who announced on Thursday (December 15) another 50-basis point increase in the key policy rate following an 8% inflation in November, said the BSP is not done with tightening moves.
With inflation at a 14-year high, the BSP chief said there’s a long way to go to finally pull down the rate of price increases to the original 2-4% target band.
“We have to do more to make sure that happens,” Medalla told Bloomberg TV.
The benchmark borrowing rate is now at 5.5%.
