Philippine Interest Rates May Rise Due to Oil Price Surge

Mar 9, 2026

63 min

Mar 9, 2026 09:31

Oil at $106.5 could push Philippine rates up: BSP chief

## Rising Oil Prices and Inflation Concerns

The Bangko Sentral ng Pilipinas (BSP) is considering increasing interest rates as global oil prices exceed $100 per barrel. This surge could push inflation beyond the central bank's target range, according to BSP Governor Eli Remolona Jr.

## Impact of Middle East Tensions

Tensions in the Middle East have heightened risks to the Philippines' inflation outlook. Remolona noted that a $100-per-barrel oil price is a critical threshold that could lead to increased costs for other commodities, thereby intensifying inflationary pressures.

## Potential Policy Actions

If inflation surpasses the BSP's 2 to 4% target, the central bank might need to tighten monetary policy. Remolona mentioned the possibility of raising interest rates if oil prices continue to rise and remain high.

## Economic Challenges for the Philippines

As a net oil importer, the Philippines faces challenges from higher energy costs, which can increase transport, electricity, and food prices. Despite a recent policy rate cut to support economic growth, the BSP now has limited room for further stimulus.

## Current Stance and Future Outlook

For now, the BSP plans to maintain its current policy stance unless the identified risks materialize. Remolona emphasized that the Philippine financial system remains strong, with robust liquidity and capital buffers.

Read the full story at the source

What you need to know to get Emirates ID?

Leave your details and get a guide as a gift to avoid mistakes

Article contents