The Bangko Sentral ng Pilipinas is likely to raise its benchmark interest rate by a quarter point to 5 percent at its Aug. 27 meeting, according to a poll of 15 economists by the Inquirer. Eleven expect the hike; four see the rate staying at 4.75 percent. The decision would extend a tightening cycle begun in April, with persistent inflation at 6.2 percent and peso weakness outweighing concerns over slowing economic growth, which fell to 2.3 percent in the second quarter.

Jun Neri, lead economist at Bank of the Philippine Islands, said inflation risks remained tilted upward despite recent deceleration, citing food and energy pressures, potential crop damage from monsoon rains and a possible Super El Niño, and volatile oil prices. "Near-term risks are concentrated in food and energy," Neri said.

BSP Governor Eli Remolona Jr. signaled last week the central bank would take a less aggressive approach to tightening, Inquirer business (PH) reports.