Traders attributed the unit’s improvement to the expected tightening in the rates of the Bangko Sentral ng Pilipinas (BSP) on Thursday during the meeting of the policy-making Monetary Board (MB) of the central bank.

BSP last rate hike was on June 5, 2008 when it raised rates by 25 basis points (bps) to address the continued increase of inflation, with the May inflation at 9.5 percent.

This brought the central bank’s borrowing rate to 5.25 percent while lending rate went up to 7.25 percent.

Last June, inflation hit double digit for the first time after several years at 11.4 percent, higher than the central bank forecast, thus, the expectation of higher rates to further rein in the faster rate of price increases. (PNA)

Traders attributed the unit’s improvement to the expected tightening in the rates of the Bangko Sentral ng Pilipinas (BSP) on Thursday during the meeting of the policy-making Monetary Board (MB) of the central bank.

BSP last rate hike was on June 5, 2008 when it raised rates by 25 basis points (bps) to address the continued increase of inflation, with the May inflation at 9.5 percent.

This brought the central bank’s borrowing rate to 5.25 percent while lending rate went up to 7.25 percent.

Last June, inflation hit double digit for the first time after several years at 11.4 percent, higher than the central bank forecast, thus, the expectation of higher rates to further rein in the faster rate of price increases. (PNA)