BSP governor: Very hard to ease policy if Fed raising rates

June 27, 2023 - 3:37 PM
Bangko Sentral ng Pilipinas Governor Felipe Medalla poses for a photograph in his office at Manila, Philippines, November 18, 2022. (Reuters/Eloisa Lopez/File Photo)

MANILA — The Philippines’ central bank might find it very hard to ease monetary policy via interest rate cuts while the U.S. Federal Reserve is raising interest rates, its outgoing governor said on Tuesday.

Bangko Sentral ng Pilipinas Governor Felipe Medalla, whose term ends next month, was speaking days after the central bank kept its benchmark interest rate steady at 6.25% for a second straight meeting and hinted the rate could stay there longer with inflation on an easing trend.

Medalla reiterated the domestic economy was likely to grow about 6% this year.

The government, meanwhile, was doing its best for the Southeast Asian country to get removed from the “grey list” of money laundering watchdog Financial Action Task Force, Medalla said on the sidelines of an economic forum organized by the Manila Times newspaper.

— Reporting by Neil Jerome Morales; Writing by Enrico Dela Cruz; Editing by Kanupriya Kapoor