The Philippines raises interest rates again to curb war-induced

Golden Ten Data reported on June 18 that the Central Bank of the Philippines has raised its benchmark interest rate by 25 basis points to 4.75% for the second consecutive time, in line with the forecasts of 23 out of 30 economists surveyed by institutions, while the remaining 7 economists had previously expected a 50 basis point hike. Despite a temporary peace agreement between the United States and Iran, which includes reopening the Strait of Hormuz—a key channel for global energy supply—Asian central banks continue to tighten monetary policy, underscoring their cautious stance. The Bank of Japan raised its policy rate on Tuesday and pledged further rate hikes to mitigate inflation risks, and the market expects Bank Indonesia to follow suit on Thursday. The Philippines relies almost entirely on oil imports from the Middle East, making it one of the countries most affected. Although the country's inflation rate dropped to 6.8% last month, it remains well above the central bank's target range of 2% to 4%. The Philippine government has warned that local fuel prices may take up to a year to return to pre-war levels.