MANILA, Philippines – The Philippine central bank has raised its key interest rate by a quarter percentage point to counter inflation.
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The rate the central bank charges commercial banks for overnight borrowing was Thursday raised to 5.75 percent.
Central bank Gov. Amando Tetangco says the decision was "a pre-emptive response to signs of inflation pressures and elevated inflation expectations."
He says latest forecasts for inflation have shifted closer to the higher end of the 2015 target range of 2 to 4 percent.
Tetangco cites higher food prices, short-term volatility in oil prices and pending power rate and transport fare increases as adding to risks.
Last month's Inflation rate was 4.4 percent, within government's 2014 target.