Philippine’s central bank unexpectedly raised its key interest rate by75bps to 3.25%, after policymakers previously downplayed the need for a large interest rate hike to curb inflation. The move came ahead of the central bank’s regular monetary policy meeting scheduled for August. Governor Medalla signaled the bank’s readiness to take further policy actions to cool surging prices. The country’s annual inflation surged to 6.1% in June, the highest level in nearly four years, pushing the full-year average beyond the 2% to 4% target band.