Philippine central bank Governor Eli Remolona said the Bangko Sentral ng Pilipinas (BSP) is ready to tighten monetary policy further to bring inflation target back to its goal, despite a weak fourth quarter performance that raised concerns about GDP growth. The recent economic slowdown, highlighted by weaker domestic demand and lower investment, has not deterred the central bank from its tightening stance.

Although the recent slowdown reduces immediate pressure to raise rates, Remolona emphasized that the central question is what is needed to lower inflation, asking whether the economy can withstand additional interest rate hikes, a comment made on Monday, August 10, 2026 at 5:54 AM UTC.

He added that the BSP is prepared to tighten policy as much as necessary to achieve its inflation target, underscoring a commitment to price stability even as GDP growth remains sluggish. Such a stance signals that the BSP may consider additional hikes beyond the current policy rate, depending on future inflation readings.

The statement, reported by Bloomberg Markets, reflects the central bank’s ongoing effort to align policy with inflation dynamics, indicating that further rate adjustments may be forthcoming if inflation does not decelerate toward the target.