Bangko Sentral ng Pilipinas Governor Eli Remolona hinted at maneuvering room for a rate uptick, dispelling concerns of economic contraction.
The second gross domestic product growth stumbled to 4.3%, trailing the robust 6.4% recorded in the first quarter.
Remolona, however, anticipates a third quarter resurgence, attributing the previous quarter’s sluggishness to distinct variables. The onus lies on a robust 6.6% expansion in the second half to fulfill the ambitious 6-7% full-year goal.
With an eye on preserving inflation below 4% by the fourth quarter, BSP maintains the latitude for benchmark rate adjustments and targets a 2-4% range for 2024-2025.
Remolona’s discourse delved into the significance of the neutral interest rate in shaping policy direction, as BSP holds the overnight rate steady at 6.25%.