Eli Remolona Jr. —CONTRIBUTED PHOTO

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) will take a less aggressive approach to raising interest rates as it weighs above-target inflation against an economy that is struggling to gain momentum, BSP Governor Eli Remolona Jr. said.

Speaking at a forum organized by the Economic Journalists Association of the Philippines on Friday, Remolona said the economy continues to operate below its potential, with a negative output gap indicating weak demand and spare capacity.

READ: Remolona sees ‘little chance’ of aggressive interest rate hikes

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