BSP: Rates no longer fuel growth

The Bangko Sentral ng Pilipinas (BSP) said monetary policy has reached the limits of its effectiveness in reviving the Philippine economy, shifting the burden to the government to implement fiscal reforms and address governance failures.

- By DERCO ROSAL

STRATEGIC ALLIANCE -- Finance Secretary Frederick D. Go (left) shares a moment with Toyota Motor Philippines (TMP) Chairman Alfred V. Ty during the 42nd Annual Joint Meeting of the Philippine and Japan Economic Cooperation Committees on Feb. 19, 2026. In his keynote address, Go highlighted the 70th anniversary of diplomatic ties between the two nations, citing seven decades of "trust, cooperation, and shared progress" that have solidified Japan as one of the Philippines' most vital strategic partners. (DOF photo)

(DOF photo)

BSP Governor Eli Remolona Jr. said that while the central bank is doing its part to lower borrowing costs, interest rate cuts alone cannot compensate for the structural issues that triggered the sharp economic slowdown in 2025.

"We have very limited tools in monetary policy. We're at the point where monetary policy cannot do much more," Remolona said in a One News interview on Friday, Feb. 20.