BSP 'inclined' to hike borrowing rates again in June

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Metro Manila (CNN Philippines, May 26) — The Bangko Sentral ng Pilipinas (BSP) is likely to raise interest rates again in June, Governor Benjamin Diokno said on Thursday.

"I think I have signalled that we are probably inclined to have another 25-basis point adjustment on our next Monetary Board meeting which is on June 23rd," he said during a virtual briefing.

The meeting is about one week away from the start of Ferdinand "Bongbong" Marcos's administration, wherein Diokno will be serving as finance secretary.

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The BSP formally resumed its hiking cycle this month, where it increased borrowing rates by 25 basis points to 2.25% in a bid to curb surging inflation.

It now sees inflation averaging 4.6% this year, above the 2-4% target range for the year.

However, the board has consistently emphasized that it is "data dependent" in making monetary policy decisions.