The Bangko Sentral ng Pilipinas is considering raising interest rates again in November to keep inflation in check amid "relentless" supply shocks.

In a television interview on Friday,  BSP Governor Eli Remolona said in a TV interview on Friday that the central bank's Monetary Board is likely to hike rates by 25 basis points at its next meeting on 16 November.

"The inflation number, the last number that came in was worse than before. But it wasn't enough for us to hike at this time. But at the same time, the upside risks seem more likely than usual. That, to me means there's a good chance for a hike the next time. So we'll see we'll have to watch the numbers," Remolona said.

Inflation accelerated from 4.7% to 5.3%

The BSP kept its key rates unchanged on Thursday despite August's inflation report showing that inflation accelerated to 5.3 percent from 4.7 percent in the previous month.

"We're not convinced it would be the last one. It won't be the last hike in the cycle," Remolona also mentioned when asked if a rate hike at its next policy meeting could be the last one for BSP.

"As far as cuts go, the output numbers have to be pretty bad and inflation numbers pretty bad for us to, I mean inflation numbers to be pretty low for us to consider rate cut next year. For now, we're still in a hawkish stance. We're still in the hawkish stance," he added.

Remolona said the BSP is concerned about the upside risks to inflation, such as the potential impact of transport fare hikes and electricity rate increases.

He also said that the central bank is monitoring the US Federal Reserve's monetary policy tightening, which could lead to capital outflows from emerging markets like the Philippines.

Rates raised 425 basis points

The BSP has already raised interest rates by 425 basis points since May 2022 in an effort to combat inflation. The central bank has said that it is committed to bringing inflation back to its target range of 2 to 4 percent.