The Bangko Sentral ng Pilipinas (BSP) underscored the Philippines’ strong position to sustain economic growth despite intensifying global trade disruptions, citing favorable inflation levels as a key policy lever.
Speaking on behalf of BSP Governor Eli M. Remolona, Jr., Deputy Governor for the Monetary and Economics Sector Zeno Ronald R. Abenoja addressed participants at a joint policy forum hosted by the BSP and the Philippine Institute for Development Studies (PIDS) on 26 May 2025. The forum, held at the BSP Head Office in Manila, was themed “Seizing the Shift: Navigating Trump’s Reciprocal Tariffs.”
“Low inflation gives us extra degrees of freedom to ease monetary policy and support growth,” Governor Remolona stated through Abenoja. With the inflation rate at 1.4% as of April 2025, the BSP sees increased flexibility in implementing supportive monetary measures.
Governor Remolona warned of the growing risks posed by global trade shocks, noting that “Trade shocks are more damaging than supply shocks. Left unchecked, they can erode decades of hard-won progress.”
The forum brought together key stakeholders from government, industry, and the academic community to analyze the economic implications of the evolving global trade landscape, particularly in light of heightened and unpredictable tariffs imposed by the United States under a new reciprocal tariff regime.
Notable attendees included Monetary Board Members Romeo L. Bernardo and Jose L. Querubin, and BSP Assistant Governor Maria Margarita D. Gonzales.
Discussions during the event highlighted the Philippines’ comparative advantages, the restructuring of global trade patterns, and strategies to address vulnerabilities while maximizing high-potential sectors. The forum emphasized the need for coordinated policy responses to strengthen the Philippines’ role in global value chains.
