By Katherine K. Chan
The Philippines’ weak economic growth gives the Bangko Sentral ng Pilipinas (BSP) room to take a less aggressive approach to monetary tightening, but Governor Eli M. Remolona, Jr. said the central bank still needs clearer evidence that inflation is moving sustainably lower before it could relax.
“Weaker growth that we’re seeing means we can be less aggressive in trying to tame inflation,” he said at the Economic Journalists Association of the Philippines’ Economic Forum on Friday.
His remarks suggest the BSP may have greater scope to weigh growth risks in its policy decisions after the economy expanded at the slowest outside the COVID-19 pandemic in more than 16 years.
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