Philippines Faces 'Difficult Combination' of High Inflation, Sluggish Growth
The Bangko Sentral ng Pilipinas (BSP) is prioritizing its response to a difficult combination of high inflation and sluggish growth, citing the "second-round effects" of global supply shocks and the risk of eroding public trust. The BSP has raised its benchmark interest rate by 125 basis points in 2026 alone, aiming to bring inflation back to its 3% target by 2028.
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