PHILIPPINE monetary officials are closely monitoring inflation, which is projected to peak at 3.6 percent this year due mainly to supply-side pressures.
In a CNBC Asia interview on Friday, Feb. 20, 2026, Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. said the projected peak remains within the government’s two- to four-percent target band. While headline inflation is expected to rise, he noted that core inflation is seen to ease, indicating underlying price pressures remain manageable.
Inflation quickened to two percent in January from 1.8 percent in December, driven largely by higher housing and utility costs. It marked a return to the target range after months below it.
With inflation expected to stay within target, the BSP’s Monetary Board cut key policy rates by 25 basis points on Thursday, bringing total reductions to 225 basis points since August 2024.
Remolona said the latest cut aims to bolster growth and restore confidence after economic expansion slowed to 4.4 percent last year, from 5.7 percent in 2024. He added that sentiment indicators are still weak but showing early “green shoots” of recovery. / PNA