THE Bangko Sentral ng Pilipinas (BSP) will maintain an easing posture next year, but it considers a 100-basis-point (bps) reduction in key policy rates as “excessive” as inflation could rear its ugly head again in 2025.
Skyscrapers, both old and new, are mirrored in a river in Pasay City, symbolizing the Philippines’ evolving urban landscape amid a changing economic climate.
“At this stage, given our forecast and given the data, 100 basis points may be a bit much. I think we will maintain an easing posture, but not to the extent of cutting by 100 bps. We will have to see what the data said,” BSP Governor Eli M. Remolona Jr. told reporters during a press briefing. “We are concerned about the pass-through . It tends to become important when there’s enough depreciation. So, there’s kind of a threshold and we’re still trying to refine our estimates of that threshold,” Remolona said.
Based on data from the Philippine Statistics Authority , food has a weight of 34.78 percent while rice has a weight of 9.35 percent of the CPI for all Income Households.
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