The Philippine central bank (BSP) is planning for a “Godzilla” El Niño alongside a prolonged oil shock, as it tries to curb inflation at three-year highs. Governor Eli Remolona said policy now uses scenarios factoring in oil prices and weather severity, with the worst price impact expected from November through February, and price stability remains the priority. Inflation rose to 7.2% in September from 6.1% in August, and rice prices climbed 18%, while the world's biggest rice importer faces supply risk from a possible new drought. The central bank raised its benchmark rate by 25 basis points to 5% in August, and HSBC's Aris Dacanay expects another quarter-percentage hike next week to 5.25%, followed by a same-sized hike in December.
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