BSP may ease policy anew in Feb 13 meeting

Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. indicated that further policy easing is on the table for the Monetary Board's February 13 policy meeting.

The decision to cut rates will depend on key macroeconomic factors, including the recently released economic growth figures and the January inflation rate.

The Philippine economy grew by 5.6% in 2024, falling short of the government's target range of 6%-6.5%.

Remolona explained that the Monetary Board will consider the 'output gap,' where a negative output gap, indicating growth below capacity, is seen as a disinflationary factor that could support a rate cut.

The Monetary Board will also consider inflation projections and the influence of the US Federal Reserve's decisions on the Philippine economy and inflation rates, though the BSP does not merely copy the Fed's moves.