Bangko Sentral raises key rate to 5% as inflation risks remain

BSP CHIEF. Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. announces the reduction of policy rates to 5% at the Monetary Board's policy meeting on August 28, 2025.

Bangko Sentral ng Pilipinas

The central bank flags persistently high oil prices, a looming El Niño, and potential wage increases as key inflation risks to watch

MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) on Thursday, August 27, raised its key policy rate by another 25 basis points to 5%, saying persistent risks from oil prices, a possible severe El Niño, and wage increases require “preemptive monetary action” even as headline inflation eases.

This marks the third consecutive rate hike by the Monetary Board, following increases in April and June as the central bank moved to contain inflation that has remained above the government’s target range.