MANILA, May 10 (Reuters) - The Philippine central bank on Thursday raised its benchmark interest rate for the first time in more than three years to contain inflationary pressure amid strong economic growth.
The Bangko Sentral ng Pilipinas (BSP) raised its overnight borrowing rate by 25 basis points to 3.25 percent, shortly after the government announced the economy grew 6.8 percent in the first quarter from the previous year.
Eleven out of 12 institutions in a Reuters poll had forecast a hike. The last time the BSP raised its main rate was in September 2014, when it increased it by 25 basis points to slow the pace of price rises.
It set the policy rate at 3.0 percent in June 2016 when it moved to an interest rate corridor system. (Reporting by Neil Jerome Morales and Enrico dela Cruz Writing by Karen Lema Editing by Jacqueline Wong)