Bangko Sentral ng Pilipinas raises benchmark rate 25 bps to 5% to curb inflation
Question
Bangko Sentral ng Pilipinas raises benchmark rate 25 bps to 5% to curb inflation
Direct answer
Higher policy rates support PHP and short-dated peso rates, while pressuring rate-sensitive Philippine equities such as PSEi constituents and REITs; Philippine government bonds may also face near-term yield pressure.
- Original publisher
- Market Ontology
- Evidence through
- 2026-08-27
- Published
- 2026-10-20
- Revision
- 1 · 2026-10-20
Cite as: Market Ontology, “Bangko Sentral ng Pilipinas raises benchmark rate 25 bps to 5% to curb inflation”, revision 1, evidence through 2026-08-27. https://marketontology.com/market-events/2026-08-27/bangko-sentral-ng-pilipinas-raises-benchmark-rate-25-bps-to-5-to-curb-inflation-84059b
How this development reaches the affected companies
| Asset | Exposure and channel | Direction | Evidence |
|---|---|---|---|
| PHP | higher policy rates improve carry and help defend the currency | Up1-5d | BSP raised the benchmark rate to 5% to support the currency and contain inflation expectations |
| PSEI | higher borrowing costs tend to weigh on rate-sensitive local equities | Down1-5d | the BSP tightened policy for a third straight meeting to curb inflation |
| PH 10Y | tighter policy typically pushes sovereign yields higher | Up1-5d | the BSP signaled inflation risks were elevated enough to justify another hike |
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What happened next
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Sources
Related
- 2026-10-21Nomura projects BSP will deliver a fourth consecutive rate hike to 5.25% on October 22PHP PSEI
- 2026-10-20Deutsche Bank forecasts a fourth consecutive BSP rate hike to 5.25% on October 22PHP/USD PSEI
- 2026-10-20Philippine peso falls to a record low as payments deficit widens and oil prices stay elevatedBSP POLICY RATE PHP/USD PSEI
- 2026-10-16Philippine National Bank expects Bangko Sentral ng Pilipinas to raise target rate to 5.25% next weekPHILIPPINE 2Y PHP PSEI
- 2026-10-15PNB expects Bangko Sentral ng Pilipinas to raise its target reverse repurchase rate by 25 basis points next weekPHP PSI
- 2026-10-15PNB expects Bangko Sentral ng Pilipinas to raise its target reverse repurchase rate by 25 basis points next weekPHP PSI
- 2026-10-13IMF warns Bangko Sentral ng Pilipinas faces a difficult policy trade-off as inflation and weak growth persistPHILIPPINE 10Y BOND PHP
- 2026-10-12Philippine inflation accelerates to 7.2% in September as core inflation reaches 4.7%PHP/USD PSEI
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