Eli Remolona, Jr. —CONTRIBUTED PHOTO
MANILA, Philippines – The Philippine economy remains resilient enough to absorb another modest interest rate increase, Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. said, noting that borrowing costs are still relatively low in real terms even after the central bank’s tightening campaign to rein in inflation.
Speaking to reporters on Monday, Remolona said real interest rates—the actual cost of borrowing after adjusting for inflation—remain negative even after policymakers raised the benchmark rate to 4.75 percent.
READ: BSP hikes policy rate by 25 bps to 4.75%
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