BSP can still cut rates - Salceda

According to Institute for Risk and Strategic Studies Inc. chair Joey Sarte Salceda, September's inflation rate of 1.7 percent gives the Bangko Sentral ng Pilipinas enough room to start cutting policy rates while maintaining price stability.

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Salceda believes that after nine straight months of inflation below two percent, the country is now in a period of predictable and steady prices that should be used to encourage investment and growth.

He pointed out that with a core inflation rate of 2.6 percent, underlying pressures are contained. At this level, he said, the BSP can safely begin easing rates to support credit and business expansion.

"At 1.7 percent headline inflation and 2.6 percent core, the BSP can act confidently. The risk now is not inflation, but slow growth. We should use this window to release liquidity and allow more credit to flow to firms and households," he said.

The former Bicol lawmaker noted that the global price environment remains favorable for the Philippines. Gold, oil and fertilizer prices, he noted, have been stable, while world grain prices are well below their 2022 levels.

"Global commodities are calm. This means we can move proactively without the risk of imported inflation. The data tell us that this is the time to act decisively on growth," Salceda said.