BSP unlikely to raise rates amid inflation spike

BSP Governor Benjamin Diokno said the central bank is unlikely to raise interest rates soon despite February's headline inflation reaching 4.7%, the highest in three years.

Diokno attributed the recent uptick in inflation to supply-side factors such as weather disruptions, African Swine Fever, and higher global oil prices.

The BSP will continue to monitor for any second-round effects that could warrant an interest rate hike but currently sees no need to adjust policy rates.

Non-monetary measures like price caps on pork and easing import restrictions have been implemented in response to supply issues.