The Philippine central bank raised its benchmark interest rate for a second time this year as inflation expectations remained elevated.
The Monetary Board of the Bangko Sentral ng Pilipinas, led by Governor Nestor Espenilla, on Wednesday, raised the key interest rate, which is the overnight reverse repurchase rate, by 25 basis points to 3.50 percent.
The interest rates on the overnight lending and deposit facilities were likewise raised accordingly.
Inflation expectations remained elevated for 2018 and that the risk of possible second-round effects from ongoing price pressures argued for follow-through monetary policy action, the bank said in a statement.
The BSP said it is prepared to take further policy action as needed to achieve its price and financial stability objectives.