BSP to wait for clearer signals before acting

The Bangko Sentral ng Pilipinas (BSP) is taking a cautious, wait-and-see stance ahead of its April 23 policy meeting, with Governor Eli Remolona Jr. signaling that any move will depend on clearer evidence of second-round inflation effects from the ongoing global oil shock.

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In an interview with CNBC, Remolona said the BSP deliberately held off from immediate policy action as it weighs the tradeoff between rising inflation and weak economic growth.

“Given that we were facing a global supply shock, there was very little we can do about that... we didn’t want to make that worse,” he said. “We needed a few more weeks to be clear about what needed to be done.”

He said that by April 23, the Monetary Board would “have a much better sense of where we stand,” as policymakers assess the latest inflation data, particularly the March print that came in above the BSP’s forecast range.