January inflation hits the lower end of the target range, Bangko Sentral ng Pilipinas keeps the February rate cut window open

Glonghui, February 5th｜According to data released by the Philippine Statistics Authority on Thursday, the inflation rate in the Philippines accelerated for the second consecutive month in January, but remained within the central bank's target range, leaving room for further monetary policy easing. The data showed that the Consumer Price Index (CPI) rose by 2% year-on-year in January, higher than the median forecast of 1.8% from the survey, and also above the level in December last year. Nevertheless, this figure is still at the lower end of the Philippine central bank's target range of 2% to 4%. Earlier this week, Philippine central bank governor Eli Remolona stated that after weaker-than-expected economic data in the fourth quarter, the authorities are ready to adjust policy rates at any time to stimulate demand. Affected by weakened investment, household, and government spending due to a public works corruption scandal, the Philippines' GDP growth rate slowed to 3% in the fourth quarter last year, marking the lowest growth rate in 14 years outside of the pandemic period.