MANILA, July 17 (Xinhua) -- The Philippine central bank on Thursday raised its key interest rates by 50 basis points to rein in inflation, which has soared to a 14-year high in June.
A tightened monetary policy is widely expected as the Philippine authorities are struggling to bring the soaring inflation back to the target range.
It is the second time in a little more than a month for the Bangko Sentral ng Pilipinas, the central bank, to hike rates. Last month, it lifted the key rates by 25 basis points.
The Philippines, which buys most of its fuel demands from abroad and has become the world's largest rice importer, is one of the Southeast Asian countries worst hit by inflation.
Buoyed by high food and fuel prices, the annual inflation hit a14-year high of 11.4 percent in June.
Diwa Guinigundo, deputy governor of the central bank, told reporters that inflation was likely to remain double digit before going down in the first quarter of 2009.
