Philippine central bank Governor Eli Remolona said the central bank is ready to tighten monetary policy further to bring inflation back to target, even as the economy slows, stressing that its main mission is to maintain price stability. The signal comes ahead of the next rate-setting meeting on August 27, after it has already raised rates by 0.50% this year. Meanwhile, gross domestic product in the second quarter grew just 2.3% year-on-year, slowing from 2.8% in the first quarter and below analyst expectations of 2.8%, marking the slowest growth since the end of 2009, excluding the COVID-19 pandemic period.
BSP signals further rate hikes to curb inflation, which typically supports the PHP against the USD.
