THE Monetary Board on Thursday announced it has raised key policy rates by 75 basis points, which will be effective immediately.
Bangko Sentral ng Pilipinas (BSP) Governor Felipe Medalla said the decision was made in order to control further inflationary pressures.
Starting July 14, interest rates on overnight borrowings will now be at 3.25 percent, while it will be 2.75 percent for overnight deposit and 3.75 percent for lending facilities,
Medalla explained that the Monetary Board, the policy-making body of the BSP, knows that further tightening of monetary policy is necessary in response to inflationary pressures.
Amid the move, the BSP assured that the Monetary Board is urging the government to come up with appropriate steps to lessen inflationary effects due to the issue of supply.