Monetary authorities maintain that a market-determined exchange rate policy is still good for the Philippine peso despite its depreciation.
The National Economic and Development Authority said the 7.5 percent peso depreciation since the Federal Reserve announced its first-rate hike of 0.25 percentage points last March 16 is broadly comparable to those experienced by the Thailand baht , Malaysia ringgit , and Indonesia rupiah . These brought the central bank’s overnight reverse repurchase rate to 3.25 percent, the overnight deposit rate to 2.75 percent, and the overnight repurchase rate to 3.75 percent.
The rate of price increases in the country accelerated further to 6.1 percent last June from the previous month’s 5.4 percent. On the supply side, the NEDA said the government has been accelerating measures to ease inflationary pressures, such as the temporary reduction of import tariffs for pork, rice, coal and corn under Executive Order 171.