the philippine central bank raised its benchmark interest rate to rein in rising prices amid a longerterm outlook of elevated inflation in the southeast asian nation the bangko sentral ng pilipinas on thursday increased its benchmark overnight borrowing rate by 25 basis points to 250 and its corresponding lending rate by the same amount to 300 the bank said upside risks continue to dominate the inflation outlook up to 2023 with potential pressure coming from higher global nonoil prices and a shortage in domestic fish supply among others it expects average inflation the breach the upper end of its 24 target range hitting 50 this year and 42 in 2023 before returning within the band at 33 in 2024 the countrys consumer price index in may rose 54 from a year earlier following a 49 rise in april the bank said that a followthrough increase in the policy rate enables the bsp to withdraw its stimulus measures while safeguarding macroeconomic stability amid rising global commodity prices and strong external headwinds to domestic economic growth it said downside risks continue to be a weakerthanexpected global recovery and the possible return of local covid19 restrictions at its previous meeting in may the bank hiked its policy rate for the first time in more than three years joining other central banks in looking to temper the rise in inflation caused in part by the russiaukraine war