BSP signals: Easing may not end yet C
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ISRAELI DRONE STRIKE KILLS 2 CYCLISTS IN GAZA AS DEATH TOLL MOUNTS DESPITE CEASEFIRE
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ONTRARY to earlier pronouncements made by the central bank, the monetary easing cycle may not be nearing its end yet after the flood control mess resulted in a worse-than-expected pace of economic expansion in the last three months of 2025. A week ahead of the central bank’s policy meeting, BSP Governor Eli M. Remolona Jr. signaled that the monetary board is still scrutinizing various data points before making it known to the public if it would really deliver another rate cut.
Asked if the BSP sticks to its earlier take on the monetary easing nearing its end, BSP Governor Eli M. Remolona Jr. told reporters: “Oo nga, akala nga namin [Yes, that’s what we thought]. Before we knew about this flood control scandal. Di ba [Isn’t it that] the last time we made a policy decision, wala pa ‘yun eh [that factor wasn’t there yet].” As such, the central bank governor was quizzed if the BSP is looking to ease further than expected. To which he replied: “We’re looking at the numbers.
The numbers seem to have changed relative to what we thought they were.” Remolona said recent data developments could give the BSP more room for further monetary easing. “Maybe,” he told reporters. Even as the headline inflation in January 2026 was at 2 percent—falling within the target band of the central bank— Remolona said the seven-man Monetary Board (MB), the highest policy-making body of the BSP, is still studying if the latest inflation print alongside the
slow economic growth posted in the fourth quarter of 2025, could narrow the room for a February rate cut. “Maybe. We’re still looking into that. There are many factors. It’s not that simple,” the BSP governor told reporters at the sidelines of the Management Association of the Philippines’ (MAP) General Membership Meeting on Wednesday in Taguig City. Asked if he could reveal which data points the BSP is still looking at, Remolona said: “[There’s] See “BSP,” A2
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INFLATION WILL HOVER AROUND 3% IN 2026, ’27 www.businessmirror.com.ph
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Thursday, February 12, 2026 Vol. 21 No. 123
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By Andrea E. San Juan @andreasanjuan
HE country’s headline inflation could hit a little above 3 percent in the second half of 2026 as the central bank expects oil prices to pick up.
“We project that it [inflation] will hover around 3 percent over the next two years. Three percent is our target. And then we have a tolerance around 3 percent, which is 1 percent on each side,” BSP Governor Eli M. Remolona Jr. said at the General Membership Meeting of the Management Association of the Philippines (MAP) on Wednesday.
While Remolona said he does not worry too much if inflation falls “below 3 percent, if it falls to 2 percent...to 1.5 percent,” the BSP governor pointed out: “I worry more when it goes up beyond 3 percent.” Based on his presentation, however, the central bank sees inflation breaching the 3-percent See “Inflation,” A2
PIDS: PHL DEBT MANAGEABLE DESPITE POST-COVID SURGE By Justine Xyrah Garcia
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HE sharp rise in the Philippines’s public debt following the Covid-19 pandemic remains manageable and is unlikely to trigger a debt crisis, according to state think tank Philippine Institute for Development Studies (PIDS). In its new research paper, PIDS said the country’s debt position today is “less worrisome” than during previous debt episodes, despite the national government’s debt-to-gross domestic product (GDP) ratio climbing
above 60 percent in recent years. “The most recent debt surge appears less worrisome than earlier debt episodes in that it is not due to sharp interest rate shocks, excessive external debt, a buildup of hidden [non-budget] deficits, or a steady decline in the country’s tax effort. Instead, debt decomposition shows the surge was driven by an exogenous [pandemic-induced] drop in output growth and a resultant rise in primary deficits as revenues temporarily collapsed and government relief and recovery See “Debt,” A2
METRO MANILA CONDO BACKLOG Newly built condominiums line New Seaside Drive in Parañaque City as the residential market contends with a steep surplus. A BusinessMirror report notes that as of early 2026, unsold ready-for-occupancy units in Metro Manila amount to roughly 7.9 years’ worth of inventory, highlighting the persistent backlog facing developers, who are now crafting more creative means to push sales and encourage diverse use of their properties. NONIE REYES
Labor market still stable–DOLE By Justine Xyrah Garcia
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VALENTINE’S RUSH A heart-shaped floral archway frames stalls brimming with
colorful blooms at Dangwa Flower Market in Manila, days before Valentine’s Day. Known as the city’s hub for fresh flowers, vendors here expect prices to rise as demand surges ahead of February 14. NONIE REYES
ESPITE the increase in the number of jobless Filipinos last year, the Department of Labor and Employment (DOLE) said the country’s labor market conditions remain stable. DOLE–Bureau of Local Employment Director IV Patrick P. Patriwirawan said the 4.2-percent full-year unemployment rate in 2025—equivalent to 2.14 million individuals—remains within the government’s target range of 4.8 to 5.1 percent. “We are still within the targets set for the year, and we can say that
the labor market remains stable,” Patriwirawan said, partly in Filipino. He said the department will continue holding monthly job fairs, which generated only a 14-percent hired-on-the-spot rate last year, alongside sustained youth employment facilitation initiatives. Based on data from the Philippine Statistics Authority (PSA), the rise in unemployment was largely driven by job losses in the construction sector, which shed about 550,000 jobs on an annual basis. Patriwirawan said DOLE has already extended assistance to
displaced construction workers through short-term employment and livelihood support, including the Tulong Panghanapbuhay para sa Ating Disadvantaged/Displaced Workers (TUPAD) and the DOLE Integrated Livelihood Program (DILP). “These are short-term engagements that give workers temporary employment to help cover their families’ basic expenses,” he said. He added that after these interventions, DOLE aims to transition affected workers into long-term employment through the Public Employment Service Offices (PE-
SOs) nationwide. Meanwhile, the youth sector remains a priority after unemployment among young Filipinos rose to 750,871 last year from 705,747 in 2024. Patriwirawan said the agency continues to strengthen youth employability programs, including the Government Internship Program (GIP), the Special Program for Employment of Students (SPES), and the JobStart Program. Under the current Philippine Development Plan (PDP), the government targets the reduction of the unemployment rate to a range of 4 to 5 percent from 2026 to 2028.
PESO EXCHANGE RATES n US 58.4810 n JAPAN 0.3788 n UK 79.8032 n HK 7.4806 n CHINA 8.4583 n SINGAPORE 46.2593 n AUSTRALIA 41.3695 n EU 69.5690 n KOREA 0.0402 n SAUDI ARABIA 15.5916 Source: BSP (February 11, 2026)