The Philippine cbank has room to continue easing policy, governor says Reuters
MANILA (Reuters) – The Philippine central bank is likely to ease monetary policy, its governor said on Thursday, following data this week that showed inflation remained within the 2% to 4% target range in 2024.
“There is still room for relaxation,” said Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona at the Rotary Club event.
The Philippines met its inflation target of 2% to 4% for the first time since 2021 last year, as the pace of consumer price inflation rose for the third consecutive month in December to 2.9%, above economists’ expectations.
Remolona said that the uncertainty about the trade policies of the US President-elect Donald Trump is causing challenges to inflation.
CNN reported Wednesday that Trump is considering declaring a national economic emergency to provide legal justification for a series of global tariffs on allies and adversaries.
Trump’s proposed tariffs, which include tariffs of 10% on global imports and up to 60% on Chinese goods, as well as plans to deport some immigrants, could stoke inflation, fueling expectations that the US Federal Reserve will cut rates.
But Remolona said the BSP’s policy does not depend on what the Fed does.
The BSP cut its key interest rate by 25 basis points for the third time in December to 5.75%, but it flagged that further hikes this year may come in “baby steps” as inflation remains a concern.
