Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. said on Monday that the Philippine economy can still absorb one more rate hike.
At a luncheon, Remolona said “Kayang-kaya pa” when asked if the economy can still handle further monetary policy tightening.
Last month the Monetary Board raised key policy rates by 25 basis points due to persistent inflationary pressures from elevated global oil and fertilizer prices.
This brought the target reverse repurchase rate to 4.75 percent, with the overnight deposit facility at 4.25 percent and the lending facility at 5.25 percent.
Remolona also cited the country’s upper-middle income status and sustained 6 percent growth over several years as evidence of solid fundamentals.
