The Bangko Sentral ng Pilipinas may hold off on interest rate cuts as it is not yet on the table as battling inflation remains the government’s top priority, President Ferdinand Marcos Jr. said.

In a recent television interview, Marcos said there is still the need to address shocks affecting agricultural products, which continue to drive up overall inflation.

“We are not yet there” in terms of cutting rates, Marcos added, indicating that the situation is constantly monitored, with the possibility of adjustments being reviewed “almost every week.”

The Philippines is currently experiencing high interest rates to combat inflation.

In its first rate-setting meeting of 2024 last 15 February, the Monetary Board maintained its key policy rate at 6.5 percent, marking the third time that the central bank has kept rates steady since an off-cycle hike in October 2023.

The BSP controls inflation by raising or lowering the key policy rate, which in turn affects the interest rates that banks charge consumers and businesses.

Line between politics, economy

President Marcos, meanwhile, underlined the need for a delineation between politics and the economy as he underscored the need to make sound decisions to uphold stability and safeguard sovereign rights.

During the recent World Economic Forum roundtable in Malacañang Palace, Marcos stressed the need for small countries like the Philippines to manage economic and political realignments independently.

He also explained that some countries like the Philippines have little influence over what more developed countries would do.

“Doing all of these things that we are talking about in the context of a very volatile geopolitical situation presents an enormous challenge,” Marcos said.

“We have little influence on what the great powers will do. We do, however, have the ability to deal with every power,” he added.