Inflation

The rise is the biggest year-on-year since October 2023

Import tariffs will be removed from household staples

The move is BSP’s fourth straight increase; it lifts 2027 inflation forecast to 6% from 5.4% on oil and El Nino risks

Decision underscores central bank’s caution against tightening policy prematurely and stalling growth in South-east Asia’s largest economy

Policymakers say the likelihood of a rate hike is growing the longer energy ​prices stay elevated

Targeted support helps the most vulnerable and does not distort price signals

But most do not see their economic and financial conditions changing over the next 12 months

The Fed meets on Oct 27-28 and is expected to keep rates steady at 3.75% to 4%

Ueda adds that ‘very strong’ AI demand is boosting capex, exports; his remarks come ahead of the central bank’s key October meeting