In a surprise move, the Monetary Board raised its policy rates by 75 basis points Thursday.

It made the move as the peso matched the all-time low of P56.45 against the dollar in early trading.

In Thursday's regular meeting, the Monetary Board decided to raise the interest rate on the BSP’s overnight reverse repurchase facility by 75 basis points to 3.25 percent.

The interest rates on the overnight deposit and lending facilities were raised to 2.75 percent and 3.75 percent, respectively.

''By taking urgent action, the Monetary Board aims to anchor inflation expectations further and temper mounting risks to the inflation outlook. In particular, policy action is intended to help manage spillovers from other countries that could potentially disanchor inflation expectations,'' the BSP said.

''The Monetary Board continues to urge timely non-monetary government interventions to mitigate the impact of persistent supply-side pressures on commodity prices,'' it added. BSP