Key facts
- Inflation jumped to 7.2% in September, well above the BSP's 2% to 4% target.
Philippines raises key rate to 5.5% as inflation saps growth
IN SHORT
The Bangko Sentral ng Pilipinas raised its benchmark interest rate by 50 basis points to 5.5% on Thursday, October 22, 2026. The move aims to curb inflation, which rose to 7.2% in September, and address a weakening peso.
Key Numbers
5.50%Philippine benchmark interest rate
50basis point rate hike
7.2%September inflation rate
4.7%core inflation rate
63.361Philippine peso to US dollar exchange rate
2.3%second-quarter economic growth
Who's Involved
Bangko Sentral ng Pilipinas
raised its benchmark interest rate by 50 basis points to 5.5%
Eli Remolona Jr.
BSP Governor
↳ Why This Matters
The Bangko Sentral ng Pilipinas's decision to raise interest rates impacts borrowing costs for consumers and businesses in the Philippines, potentially affecting economic growth and investment as the country grapples with high inflation and a weakening peso.