The Bangko Sentral ng Pilipinas increased its key policy rate by 25 basis points to 5 percent, with the overnight deposit facility rate set at 4.5 percent and the overnight lending facility rate at 5.5 percent. The changes took effect on August 27 as the third consecutive hike following moves in April and June. July headline inflation stood at 6.2 percent and core inflation at 4.2 percent, both above the 2-to-4 percent target range.