The Central Bank of the Philippines raised its key interest rate by 25 basis points to 4.50% on Thursday. This decision was made amid growing concerns about inflation, which have become more pressing than issues related to economic growth rates.

Before the meeting, 12 out of 26 analysts surveyed expected a rate hike, while the remaining 14 believed the rate would remain unchanged.

This increase followed an unscheduled meeting at the end of March, during which the central bank decided to keep the rate steady. The latest decision came after inflation was recorded to have risen in March.