No offcycle moves ahead of Nov. 17 meeting governor
Matching Fed will help deal with inflationary pressures
Inflation to return to target in 2H 2023, 2024

Nov 3 Reuters The Philippine central bank signalled on Thursday it planned a 75 basis point hike in its key interest rates later this month to match the latest monetary tightening by the U.S. Federal Reserve.

The Fed hike supports the BSP39;s stance to hike its policy rate by the same amount in its next policy meeting on Nov. 17, Bangko Sentral ng Pilipinas Governor Felipe Medalla said in a statement.

The BSP deems it necessary to maintain the interest rate differential prevailing before the most recent Fed rate hike, in line with its price stability mandate and the need to temper any impact on the country39;s exchange rate of the most recent Fed rate hike, he said.

Ruling out an offcycle policy move, Medalla said the hike would be effective after the Nov. 17 meeting.

Inflation in January to September averaged 5.1, well outside the central bank39;s 24 target for 2022, partly because of a weaker peso that has further aggravated the cost of importing food and fuel.

By matching the Fed39;s rate hike, Medalla said the BSP reiterated its strong commitment to maintaining price stability by aggressively dealing with inflationary pressures stemming from local and global factors.

He cited the BSP39;s preparedness to take necessary policy actions to bring inflation toward a targetconsistent path, as he projected it to…