Updated
Updated · Bloomberg · May 22
Philippine Central Bank Signals Aggressive Rate Move as Iran War Fuels Supply Shock Inflation
Updated
Updated · Bloomberg · May 22

Philippine Central Bank Signals Aggressive Rate Move as Iran War Fuels Supply Shock Inflation

4 articles · Updated · Bloomberg · May 22
  • Governor Eli Remolona said the Bangko Sentral ng Pilipinas may need to move aggressively on interest rates to keep from falling behind rising inflation.
  • The warning was tied to the Iran war, which he described as a big and persistent supply shock likely to keep price pressures elevated.
  • In an interview aired Friday on One News, Remolona said policymakers must react forcefully when inflation is driven by prolonged external supply disruptions.
  • The remarks signal a more hawkish stance from the BSP as geopolitical conflict threatens to spill into domestic prices through energy and other imported costs.
As a new war chokes global oil, can the Philippines' rate hikes tame inflation without triggering a recession?
With Iran's 'protection racket' controlling 20% of world oil, how will the global economy respond?
Will a prolonged Middle East crisis cripple oil-dependent economies or accelerate a green energy revolution?