Mubasher: The Philippine central bank raised its key interest rate for a fifth consecutive meeting to the highest level since 2009, in a bid to rein in inflation.

The overnight reverse repurchase rate would be raised by 25 basis points (bps) to 4.75%, the Bangko Sentral ng Pilipinas (BSP) said in a statement.

Inflation stood at 6.7% last October, as food prices continued to surge.

The central bank has raised interest rates by 175 bps since last May, marking the most aggressive tightening policy in Asia.

“The Monetary Board believes that prospects for the domestic economy remain generally favorable and allow some scope for a measured adjustment in the policy rate to rein in inflation expectations and preempt further second-round effects,” the BSP said.

In addition, the BSP raised its inflation forecast for this year to 5.3% from 4.9%, whereas it lowered its inflation projection for the next year to 3.5% from 3.7%. It also raised its forecast for 2020 to 3.3% from 3.2%.