BSP considering further easing at Feb 13 meeting

Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. said the Monetary Board is considering further policy easing at its upcoming meeting based on recent economic performance and macroeconomic conditions.

The Philippine economy grew by 5.6% in 2024, falling short of the government's target range of 6.0% to 6.5%, marking two consecutive years missing economic targets.

Remolona noted that a negative output gap exists, indicating the economy is growing below its capacity, which could influence policy decisions towards potential rate cuts.

The Monetary Board will review upcoming inflation data and consider the Federal Reserve's recent pause in rate adjustments when deciding on local policy rates at their February 13 meeting.

BSP projects inflation within 2.5% to 3.3%, citing factors like higher food prices and sin taxes, but offset by lower rice and electricity costs.