Philippines hikes rates to fight Iran-fueled inflation

The Philippine central bank raised its key interest rate on Thursday, a move aimed at taming inflation risks triggered by rising energy prices linked to the conflict in the Middle East. The decision marks the first rate adjustment in months, as policymakers seek to counter the economic fallout from higher oil costs. The bank’s action is designed to keep price increases within a manageable range, protecting consumers and businesses from a sharper spike in living costs. Analysts note that the rate hike is a preemptive measure. While the full impact of the Iran situation on global supply chains remains unclear, the central bank is acting now to stabilize expectations and prevent a wage-price spiral. The move signals that the government is prioritizing price stability, even if it means slightly slower economic growth in the short term. Observers will watch for further adjustments if energy costs continue to climb.