MANILA -- The Monetary Board is considering an off-cycle hike in its policy interest rate, Bangko Sentral ng Pilipinas Governor Eli Remolona said on Tuesday.

Remolona, who also acts as the chairman of the Monetary Board, told reporters that an off-cycle move is on the table as early as October 26, Thursday.

“Right now I’m going to a meeting where we’ll look at the data… If the data says inflation will go up very significantly and there’s a risk of affecting inflationary expectations, then we may go for an off-cycle hike as early as Thursday (this week). Pwede ring next week,” Remolona said.

Headline inflation accelerated for the last two consecutive months, settling at 6.1 percent in September.

• Inflation quickens in September to 6.1 percent despite rice price cap

BSP Deputy Governor Francis Dakila Jr. said in a statement that they are intent on controlling inflation.

"We’re carefully watching the risks and remain hawkish. Before we consider any relaxation on the policy stance, we need to be very confident that inflation has been restored to the target,” Dakila said.

BSP forecasts average inflation for 2023 to settle at 5.8 percent.

Inflation quickened in August and again in September amid food price hikes, particularly rice. Some analysts have also warned that the Israel-Hamas war may push world oil prices up if the conflict widens to oil-producing countries in the Middle East.

Inflation and high interest rates have been cited as major reasons for the slower economic growth posted in the second quarter.

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