Philippine Inflation Slows, Central Bank Considers Pause in Monetary Tightening

Philippine inflation slowed in October, giving policymakers reason to pause their aggressive monetary tightening. The central bank is expected to keep its key interest rate at its current level of 6.5% due to slowing inflation. The Philippines has been one of the most aggressive in tightening monetary policy in recent years, with cumulative rate increases of 450 basis points since May 2022. Rate hike bets are also increasing in Southeast Asia after Bank Indonesia unexpectedly hiked its key rate.