Asia Inflation Fight Spreads as Philippines, Malaysia Raise Interest Rates
The Philippines and Malaysia joined India and Vietnam in raising interest rates this week as nations in a region that led the global economic recovery intensified their fight against inflation.
Bangko Sentral ng Pilipinas yesterday increased the rate it pays lenders for overnight deposits to 4.5 percent from 4.25 percent in its second move this year, while Bank Negara Malaysia lifted the benchmark overnight policy rate for the first time in 2011, boosting it by a quarter point to 3 percent.
Surging food and oil costs are escalating the danger of inflation in Asia, prompting policy makers to accelerate monetary tightening even at the risk of slowing growth. India on May 3 doubled the magnitude of rate increases and the State Bank of Vietnam raised borrowing costs the following day for the fifth time in 2011.