BSP can hold rates 'for the time being'

The Bangko Sentral ng Pilipinas (BSP) can keep the country's policy settings unchanged, but a rate cut is still possible if price pressures continue to ease.

-  KEISHA TA-ASAN

During a budget hearing, BSP Governor Eli Remolona Jr. said the balance of risks to the inflation outlook shifted to the downside and inflation expectations are well anchored.

"Evolving inflation conditions show that the BSP can hold its policy settings steady for the time being," he said.

"If price pressures continue to ease, it will be possible for the BSP to consider a less restrictive monetary policy stance." However, Remolona said it is crucial to continue close monitoring of the risks to the inflation outlook amid lingering supply-side concerns and geopolitical risks.

He added that the national government's non-monetary measures and programs play an important part in helping ease inflation pressures.