Central Banks
Philippine Rate Cut More Likely in 2025 on Inflation Risks
- Over 50% chance inflation may breach target for a third year
- Remolona says hawkish stance doesn’t mean further tightening
Eli Remolona
Photographer: Lisa Marie David/BloombergThis article is for subscribers only.
The window for the Philippine central bank to start reducing the key rate in the second half of 2024 is narrowing as the risk that inflation may breach its target for a third straight year rises, according to Governor Eli Remolona.
“The upside risks have become worse than before, and that’s the reason we’ve stayed hawkish,” Remolona said in an interview on Monday at the Bangko Sentral ng Pilipinas in Manila. “The policy rate is on the tight side. So by being hawkish, what we mean is we will stay where we are,” he said.