The Philippines’ central bank is factoring a possible “Godzilla” El Niño into its policy decisions as it battles inflation.

Bangko Sentral ng Pilipinas Deputy Governor Zeno Ronald Abenoja told the Financial Times that the weather event could hit the region and worsen inflationary pressures. Inflation stood at 6.1 per cent in August, among the highest in Southeast Asia.

The bank has raised its benchmark rate by 0.75 percentage points since April, to 5 per cent. It raised its 2027 inflation projection to 5.4 per cent from 4.5 per cent, citing El Niño risks to farm prices.

The state weather bureau PAGASA said El Niño could intensify into a “very strong” event from October to January.

The government is preparing by shifting planting calendars, supporting irrigation and promoting drought-tolerant crop varieties, Abenoja said.

A record El Niño could bring severe dry spells to parts of the country and strengthen storms, hitting the agriculture sector hard.