The Bangko Sentral ng Pilipinas (BSP) entered 2026 with a hard-earned policy cushion, as inflation had fallen below target and the banking system remained robust, according to a report from Philstar Biz.
Monetary authorities spent the previous year gradually easing borrowing costs to support economic demand. The lower interest rate environment helped sustain growth while keeping price pressures in check.
Despite the favorable starting point, the BSP must now navigate a narrow path between further stimulating the economy and guarding against potential risks such as global volatility or renewed inflation.