Philippines, Indonesia raise interest rates to rein inflation

The central banks of the Philippines, Indonesia have raised their benchmark interest rates on Thursday, as the policymakers intensify their efforts to restrain inflation.

The Philippines’ interest rate hiked by 50 basis points or half a percentage point, brings the benchmark to 4.25 percent.

Meanwhile, Bank Indonesia increased its policy rate for the second consecutive month by 50 basis points to 4.25 percent.

Moreover, Taiwan’s central bank has announced a 12.5 basis point increase to 1.625 percent as it considers the third hike this year.

Hong Kong’s monetary authority had also raised its base rate by 75 basis points to 3.5 percent on Thursday.

While, the Central Bank of Vietnam said it would raise its benchmark rate that currently 4 percent, by 100 basis points on Friday, according to Reuters.

Noteworthy, Philippine inflation reached 4.9 percent on the year from January to August, above the central bank’s target.

The bank also raised its full-year inflation outlook for 2022 to 5.6 percent from 5.4 percent, while raising its forecast for 2023 to 4.1 percent from 4.0 percent.