The Bangko Sentral ng Pilipinas increased its key interest rate by 25 basis points to 4.75 percent on June 18, 2026, marking the second consecutive hike. Inflation stood at 6.8 percent in May, above the 2-4 percent target range, with recent pressures attributed primarily to elevated fuel and fertilizer prices linked to Middle East developments. Forecasts indicate inflation averaging 6.4 percent in 2026 before declining in subsequent years.