Rate Hike at the Central Bank of the Philippines – Currency Thoughts

Rate Hike at the Central Bank of the Philippines

April 23, 2026

There’s been a 25-basis point central bank interest rate hike in the Philippines, its first increase since a similarly-sized move in October

2023 that lifted the rate then to cyclical high of 6.5% where it stayed until easing commenced in August 2024. Cuts totaling 75 basis points in the second half of 2024, 125 bps during 2025 and 25 bps two months ago had lowered the rate to 4.25%, and today’s move reverses that final cut. Even at the new 4.50% level, the Central Bank of the Philippines‘ interest rate is just barely above last month’s on-year consumer price inflation reading of 4.1% and over a percentage point above the 3.0% inflation target. Due to the spike in global energy and fertilizer prices according to a released statement,

Average headline inflation is seen to breach the 4.0-percent tolerance ceiling in both 2026 and 2027. Inflation expectations have also risen further. The policy rate increase is intended to anchor inflation expectations and contain the buildup of second-round effects. A measured increase in the policy rate will still accommodate economic recovery over the medium term.

However the Middle East war evolves militarily from here, a red line appears likely to be crossed soon if not already were central banks will be either putting interest rate cutting on indefinite hold or following the Filipino example and reversing course.

Copyright 2026, Larry Greenberg. All rights reserved.

Tags: Central Bank of The Philippines

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on Thursday, April 23rd, 2026 at 8:16 am and is filed under Central Bank Watch.
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