30 C
Dubai
Thursday, May 15, 2025
spot_img

Philippine central bank open to more rate hikes

New Philippine central bank Governor Eli RemoLona signaled that further tightening of monetary policy is still under consideration for the country. He mentioned that it’s “premature” to discuss reducing the key rate. The Bangkok Sentral ng Pili pinas is closely monitoring inflation risks, such as El Nino and wage increases, and remains on the “tightening side.”

Governor RemoLona revealed this during his first Bloomberg Television interview in Canada. Currently, the central bank is evaluating whether to implement a rate hike or not, rather than contemplating rate cuts. Additionally, they are keeping a close eye on any significant fluctuations in the Philippine peso, particularly if the US Federal Reserve enacts further monetary tightening. So far, the Philippine peso has strengthened and performed well compared to other currencies in the region this year.

The central bank chief highlighted that the Philippine economy remains “very strong.” However, they would like to observe the impact of their most aggressive tightening cycle in two decades, which has raised the key rate to a 16-year high, on the country’s growth.

Regarding the possibility of a rate cut, Governor Remo Lona stated that it might be considered if inflation were to be well within the central bank’s target range of 2% to 4%, or in the event of a global recession. Despite easing for five consecutive months, headline inflation stood at 5.4% in June, still significantly above the target range.

Next Article

Related Articles

President Trump Lands in Abu Dhabi to Seal Strategic Gulf Tour

President Donald Trump has landed in Abu Dhabi, the capital of the United Arab Emirates, concluding his strategic tour of the Gulf region. The visit...

UAE Joins Gulf-US Summit in Riyadh: Sheikh Khaled Leads Push for Security, Economic Growth

UAE is actively participating in the Gulf-US Summit being held in Riyadh, with His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown...

Emirates Elevates to New Heights: Becomes the World’s Most Profitable Airline

Emirates has officially become the world’s most profitable airline, surpassing major global competitors with a combination of innovation, strategic growth, and operational excellence. The Dubai-based...

Global Rankings Leader U.S. News & World Report Enters India with Investment in The Red Pen

With a growing appetite for international education among Indian students, this new partnership is set to reshape how families approach global admissions. For years, The...

Trinity Car Rental Boutique Partners with Dubai Police Academy and MOI to Drive Innovation and Sustainability

Dubai, UAE – Trinity Rental, a leading luxury car rental boutique in Dubai, is proud to announce its collaboration with the Dubai Police Academy...

Latest Articles