Stabilizing global crude oil prices could give the Bangko Sentral ng Pilipinas (BSP) the green light to shift to a more “neutral” stance as inflationary pressures ease and the peso strengthens, Manulife Investment Management said, as reported by BusinessWorld.
The investment firm noted that lower oil prices reduce cost pressures across the economy, which could allow the central bank to move away from its tightening bias without reigniting inflation. A stronger peso further supports this outlook by dampening import costs.
Manulife’s assessment aligns with expectations that BSP may begin easing monetary policy later this year if inflation continues to moderate. The central bank has maintained a hawkish stance to anchor price expectations, but declining oil prices provide room for a policy shift.