The Monetary Board of the Central Bank of the Philippines raised its target reverse repurchase rate by 25 basis points to 4.75% on June 17, 2026, judging that tighter policy was warranted as inflationary pressures remained strong and the latest projections showed average headline inflation breaching the 4.0% tolerance ceiling in 2026 and 2027 and settling slightly above the 3.0% target in 2028. The interest rates on the overnight deposit and lending facilities were adjusted to 4.25% and 5.25%, respectively. The central bank said rising core inflation pointed to broadening price pressures and second-round effects, including higher inflation expectations, while the measured move would help keep expectations anchored, mitigate those risks, and complement fiscal measures in supporting steady consumption and strengthening business sentiment. It cited elevated global oil and fertilizer prices as continuing to drive domestic fuel and food prices, and said it will remain guided by incoming data and is prepared to take further monetary action as needed to ensure inflation returns to the 3.0% target.
Central Bank of the Philippines2026-06-18
Central Bank of the Philippines Raises Target Reverse Repurchase Rate by 25 Basis Points to 4.75%
The Monetary Board of the Central Bank of the Philippines raised its target reverse repurchase rate by 25 basis points to 4.75% on June 17, 2026, with the overnight deposit and lending rates adjusted to 4.25% and 5.25%, as persistent inflation pressures and updated forecasts showed average headline inflation above the 4.0% tolerance ceiling in 2026 and 2027 and slightly above the 3.0% target in 2028. The central bank cited broadening core inflation, elevated oil and fertilizer prices, and rising inflation expectations, and said it remains data-dependent and ready to tighten further if needed to return inflation to target.