LBCI

Philippines' finance minister says no reason for rate hike

World

15-05-2023 | 04:17

Share

Share

Philippines' finance minister says no reason for rate hike

2^min

The Philippine central bank has no reason to raise interest rates further as domestic inflation is easing, the country's finance minister said ahead of a May 18 monetary policy meeting.

Finance Secretary Benjamin Diokno reiterated his stance against a rate hike, but said he was just expressing his opinion and was only one of seven monetary board members who will vote during Thursday's meeting.

"I'm for a pause, that's my opinion. Inflation is going down," Diokno said.

While the Bangko Sentral ng Pilipinas (BSP) expected inflation to ease below 4% by the fourth quarter, there was no solid consensus for a pause on May 18, with some economists penciling in a hike before the central bank takes a break from policy tightening.

BSP Governor Felipe Medalla, in a press conference in the central Philippines province of Cebu, said "next year will be a year of good growth and good inflation".

The BSP has raised rates by a total of 425 basis points since May last year to fight inflation, the full impact of which Diokno said has yet to be absorbed by the economy, considering that monetary policy often works with a long lag.

Officials have said the central bank's aggressive tightening could dampen domestic demand, which slowed for a fourth straight month in the first quarter and contributed to the economy's slower annual expansion in the first three months of the year.

The International Monetary Fund said on Friday that with risks to inflation remaining on the upside, "a continued tightening bias may be appropriate until inflation falls decisively within the 2-4% target range".

Philippine annual inflation eased for a third straight month in April to 6.6%, and the economic planning ministry said it appeared to have hit its peak.

Philippines

Finance

Rate Hike

Subscribe to our VOD

SUBSCRIBE

Our visitors readings

Israel strikes vehicle in Doueir-Wadi Aaba in South Lebanon—Video

2026-02-01

Israel strikes vehicle in Doueir-Wadi Aaba in South Lebanon—Video

Lebanon, US push Israel for temporary halt before talks: Axios

2026-04-11

Lebanon, US push Israel for temporary halt before talks: Axios

Ceasefire fragile as Lebanon weighs diplomacy, possible US-mediated talks with Israel

News Bulletin Reports

2026-05-02

Ceasefire fragile as Lebanon weighs diplomacy, possible US-mediated talks with Israel

Israel-Lebanon talks to be held in Italy on August 4: Italian FM

2026-07-22

Israel-Lebanon talks to be held in Italy on August 4: Italian FM

Videos

Lebanon-Israel talks: delegations arrive at US Embassy in Rome — Video

2026-08-06

Lebanon-Israel talks: delegations arrive at US Embassy in Rome — Video

Residents begin returning to Zawtar el-Gharbiyeh, southern Lebanon: Video

2026-07-24

Residents begin returning to Zawtar el-Gharbiyeh, southern Lebanon: Video

Slotkin to LBCI: Lebanese army needs resources to confront Hezbollah, $36 million request submitted for special forces

2026-07-20

Slotkin to LBCI: Lebanese army needs resources to confront Hezbollah, $36 million request submitted for special forces

Lebanon’s ambassador to Washington: trilateral framework agreement first step toward restoring sovereignty

2026-06-26

Lebanon’s ambassador to Washington: trilateral framework agreement first step toward restoring sovereignty

Rubio on Lebanon-Israel framework agreement: 'beginning of the beginning,' more work needed

2026-06-26

Rubio on Lebanon-Israel framework agreement: 'beginning of the beginning,' more work needed

Lebanon, Israel sign trilateral framework agreement after Washington talks attended by Rubio: Video

2026-06-26

Lebanon, Israel sign trilateral framework agreement after Washington talks attended by Rubio: Video

Israeli strikes renew on Choukine, Maifadoun, and Nabatieh al-Fawqa in southern Lebanon: Video

2026-06-20

Israeli strikes renew on Choukine, Maifadoun, and Nabatieh al-Fawqa in southern Lebanon: Video

Massive Israeli strikes hit South Lebanon under ceasefire conditions

2026-06-19

Massive Israeli strikes hit South Lebanon under ceasefire conditions

Trump criticizes Israel’s Lebanon campaign, says war has gone on ‘too long’ and floats Syria role in conflict

2026-06-16

Trump criticizes Israel’s Lebanon campaign, says war has gone on ‘too long’ and floats Syria role in conflict

Most read

24 hours

7 days

Month

Lebanon has not agreed to shortlist of countries that could verify Hezbollah's disarmament: Reuters

1

Lebanon has not agreed to shortlist of countries that could verify Hezbollah's disarmament: Reuters

Ali al-Taher hills: Between military confrontation and surrender scenario

2

Ali al-Taher hills: Between military confrontation and surrender scenario

Dispute between Lebanon’s prime minister and defense minister under discussion, sources say

3

Dispute between Lebanon’s prime minister and defense minister under discussion, sources say

Lebanon Cabinet approves fees on waste-generating products despite ministerial objections

4

Lebanon Cabinet approves fees on waste-generating products despite ministerial objections

A new force for Lebanon's south? The debate over who will monitor the next phase after UNIFIL

5

A new force for Lebanon's south? The debate over who will monitor the next phase after UNIFIL

Explosion rocks ammunition factory near Rome

6

Explosion rocks ammunition factory near Rome

Lebanon's defense minister apologizes to martyrs' families, vows to defend army's voice

7

Lebanon's defense minister apologizes to martyrs' families, vows to defend army's voice

Lebanon presidency denies media reports on Aoun-Trump meeting

8

Lebanon presidency denies media reports on Aoun-Trump meeting

Download now the LBCI mobile app

To see the latest news, the latest daily programs in Lebanon and the world

Google Play

App Store

Download now the LBCI mobile app

We use
cookies

We use cookies to make
your experience on this
website better.

Accept

Learn More