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# Bangko Sentral ng Pilipinas raises reverse repo rate 25 bp to 4.75%
- URL: https://www.theglobalbanker.com/bsp-raises-reverse-repurchase-rate-25bp-4-75-percent-june-2026/
- Published: 2026-06-18T13:55:00.000Z
- Updated: 2026-10-24T01:28:06.000Z
- Description: The BSP Monetary Board lifted its target reverse repurchase rate 25 bp to 4.75%, adjusted deposit and lending facilities in step, and said the country faces a higher inflation path.
- Author: TGB Editorial Team
- Tags: Central Banks, Asia-Pacific

The Bangko Sentral ng Pilipinas raised its target reverse repurchase rate by 25 basis points to 4.75% on Thursday, its second consecutive 25 basis-point increase, as the Monetary Board said the country was now facing a higher inflation path. The move was accompanied by parallel adjustments to the central bank's overnight facilities.

Alongside the change in the headline policy rate, the overnight deposit facility rate was raised to 4.25% and the overnight lending facility rate to 5.25%. 

#### CORRIDOR ADJUSTED IN LOCK-STEP

The increase follows a 25 basis-point hike in April 2026 that took the reverse repurchase rate to 4.50%. 

The overnight deposit and lending facility rates remain 50 basis points below and above the policy rate respectively. 

#### INFLATION OUTLOOK SHIFTS HIGHER

The BSP projected that average headline inflation would breach the 4.0% tolerance ceiling in both 2026 and 2027 before settling slightly above the 3.0% target in 2028\. 

The BSP said global oil and fertiliser costs were pushing domestic food and fuel prices higher, while rising core inflation indicated that price pressures were broadening and triggering second-round effects. 

The two increases in 2026 have raised the reverse repurchase rate by a cumulative 50 basis points. 

The Monetary Board said it would continue to be guided by incoming data and was prepared to take further monetary action as needed to ensure that inflation returns to the 3.0% target.