Philippine central bank raises key rate by 50 basis points

MANILA -- The Philippine central bank on Thursday raised its key interest rate by 50 basis points to 3.75% in a bid to counter soaring inflation.

The decision comes as average inflation for the year is expected to breach the upper end of the 2%-4% target range, Gov. Felipe Medalla said. The central bank now sees full-year inflation of 5.4%, faster than the 5.0% forecast in its June meeting.