The Philippine central bank raised its benchmark interest rate on Thursday, marking the third consecutive increase since April as policymakers move to curb inflationary pressures. The decision comes amid persistently high global energy prices, which continue to transmit cost pressures through the fuel-import-dependent economy.

The central bank lifted its overnight reverse repurchase rate by 25 basis points to 5.00%, with the benchmark lending rate correspondingly rising to 5.50%. The move aligned with market expectations, as 10 of the 11 economists surveyed ahead of the announcement had forecast the increase.

Since April, the central bank has now accumulated a total of 75 basis points in rate hikes. Officials are closely monitoring the broader economic impact of geopolitical tensions in the Middle East, which remain a key risk factor for the country's outlook.

The Philippines is particularly vulnerable to rising energy costs due to its heavy reliance on imported fuel. Consumers and businesses remain highly sensitive to fluctuations in oil, gas, and electricity prices, amplifying the domestic effects of global supply shocks.

This latest policy action sets the Philippine central bank apart from several regional peers, including the central banks of Indonesia and Thailand, both of which opted to hold their policy rates steady at their most recent meetings.