The Bangko Sentral ng Pilipinas (BSP) on Wednesday said it remains data-driven as it monitors the impact of the ongoing Middle East conflict on oil prices, remittances, and inflation.
In a statement, the central bank said it is assessing risks to domestic inflation and the broader economy ahead of the Monetary Board’s rate-setting meeting on April 23, 2026.
“Price stability is the BSP’s main mandate. As such, the BSP is assessing the potential impact of higher oil price on the price of fertilizer, transport fares, and inflation in general,” it said.
The BSP added it is also evaluating how developments in the Middle East could affect “the country’s current account —including remittances and trade— and financial markets.”
Regarding the peso, the BSP said it operates in the foreign exchange market to smooth out excessive volatility and maintain orderly conditions.
“This is consistent with a flexible exchange rate policy, with intervention limited to tempering large swings that could affect inflation rather than defending any specific level,” it said. (Joann Santiago-Villanueva/PNA)
