Key insights
- The Bangko Sentral ng Pilipinas (BSP) raised interest rates by 25 bps to 4.50% due to rising inflation. While this action directly impacts the Philippines, it has a minor negative influence on US equities as it reflects global inflationary pressures and potential for similar actions by other central banks, including the Federal Reserve, which could tighten global financial conditions.
Investing.com -- The Bangko Sentral ng Pilipinas raised interest rates by 25 basis points to 4.50% on Thursday, as inflation concerns took priority over economic growth worries.
The rate hike was anticipated by 12 of 26 analysts surveyed by LSEG before the meeting. The remaining 14 analysts expected rates to remain unchanged.
The decision follows an off-cycle meeting in late March, where the BSP opted to keep rates steady. The central bank’s latest move comes after inflation increased in March.
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