MANILA – The Philippine central bank may raise interest rates by 100 basis points more this year, its governor said on Wednesday, after annual inflation soared to a near four-year high in June driven mainly by increases in food and fuel prices.
“To begin with, even with no inflation target breaching we should normalise monetary policy as GDP recovers,” Bangko Sentral ng Pilipinas Governor Felipe Medalla said in a phone message.
The central bank has raised its benchmark interest rate by a total 50 basis points so far this year, and a cumulative 100 bps hike will bring the rate to 3.5%. Its next policy review is on August 18.
(Reporting by Karen Lema; Editing by Muralikumar Anantharaman)