The Philippine economy can still absorb another interest rate increase if needed, Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. told Philstar Biz on Wednesday, as inflation remains elevated while growth is expected to recover in the second half.
Remolona noted that the central bank is prepared to act if price pressures persist, though he expressed confidence that the economy's fundamentals are strong enough to withstand further monetary tightening. The BSP has raised interest rates multiple times over the past year to combat inflation, which has remained above the government's target range.
The governor's remarks come as analysts monitor the impact of previous rate hikes on economic activity. The BSP's next monetary policy meeting is scheduled for August, where the board will decide whether to hold or adjust rates further based on incoming data.