The Philippines’ economic growth accelerated in the second quarter despite borrowing costs at a 17-year-high.

Gross domestic product rose 6.3% in the April-June period from a year ago, the statistics agency said Thursday, matching the median estimate in a Bloomberg survey. It compares with a revised 5.8% growth in the prior three-month period.

The economy’s strong performance could give the central bank reason to rethink a potential rate cut next week. Bangko Sentral ng Pilipinas governor Eli Remolona said earlier this week that a pivot to monetary policy easing on Aug 15 was “a little bit less likely” after inflation quickened last month.

The latest GDP print keeps the government’s 6%-to-7% growth target for this year on track.

“Signals for household spending, the primary growth engine, suggest some strengthening in private consumption,” Bloomberg Economics’ Tamara Henderson said in a note before the data. “In particular, real incomes increased and remittances from overseas picked up,” said the economist who had forecast a 6.8% expansion last quarter, in part due to base effects.

  - Bloomberg