Philippine central bank hikes rates

MANILA, July 14 (AFP): The Philippine central bank announced a surprise interest rate hike Thursday, raising borrowing costs for the third straight month and warning more could follow as officials try to rein in surging energy and food prices.

The move follows similar increases around the world as war in Ukraine and supply disruptions fan inflation and increase the financial strain on households and businesses.

Bank governor Felipe Medalla, who was appointed recently by President Ferdinand Marcos Jr, said the monetary board had agreed to raise its key rate by 75 basis points to 3.25 per cent, effective immediately.