Reuters – Monetary policy would have to remain “sufficiently tight” with inflation currently forecast to stay above its 2 percent to 4 percent target, making a rate cut at its next meeting unlikely, Bangko Sentral ng Pilipinas governor Eli Remolona said on Monday.
The central bank’s benchmark interest rate was kept steady at 6.5 percent in the final two meetings of last year, after hiking rates by a total of 450 basis points since May 2022 to rein in inflation. Its next meeting is on 15 February.
Headline inflation last month returned to target at 3.9 percent, but average inflation for 2023 stood at 6 percent, way above the central bank’s 2 percent to 4 percent target.
Governor Remolona also said the economic slowdown in China “is a concern” and could hurt the Philippines’ growth prospects, saying it could be a “long slowdown”.
