MANILA, May 22 – The Philippine central bank could raise interest rates ahead of its scheduled June 18 policy meeting, its governor said on Friday.
Bangko Sentral ng Pilipinas Governor Eli Remolona said in an interview with One News that the April rate hike was not enough, noting a large and persistent supply shock.
"It's a toss-up whether we do an off-cycle, or we just wait for the regular meeting," Remolona said.
The central bank raised its key rate by 25 basis points to 4.50% in April to curb inflation. Surging fuel costs have stoked concerns about broader price increases.
The bank held an off-cycle meeting in March, the first in Asia, reflecting concerns about the Middle East conflict's impact on inflation and growth.
The peso has lost about 4.6% against the dollar, breaching the 60-peso level, according to LSEG data.
Indonesia on Wednesday surprised markets with a 50-basis-point rate hike to support the rupiah, which hit record lows against the dollar.
India, Indonesia, and the Philippines are especially vulnerable to Middle East disruptions as oil importers facing capital outflows.
"Whatever we do, we want to convey that we're trying to be proactive," Remolona said.
