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Saturday, February 21, 2026 Vol. 21 No. 132
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‘MONETARY TOOLS ALONE CAN’T BOOST RECOVERY’
WHAT ARE THE RISKS FROM A.I. GONE AWRY? One misconfigured API key can cascade across critical infrastructure. AI-GENERATED ILLUSTRATION BY DALL·E VIA CHATGPT / OPENAI
“Monetary policy can do a little bit and that little bit is what we’re trying to do.” —Bangko Sentral ng Pilipinas Governor Eli M. Remolona Jr., on the limits of monetary policy
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By Andrea E. San Juan
HE Central Bank has signaled that monetary policy alone cannot do much more and it needs help from “other things” in getting the economy back on its feet and eventually reviving confidence in it.
“Monetary policy can do a little bit and that little bit is what we’re trying to do,” Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona Jr. said in a televised interview on Friday, a day after the seven-man Monetary Board decided to reduce the Target Reverse Repurchase (RRP) Rate by 25 basis points to 4.25 percent. Remolona expressed hope at the Monetary Board’s first policy meeting for the year that the MB’s
decision would “actually help to restore confidence, boost investment and consumption.” The Central Bank governor admitted, however, that the BSP has become “less certain” of the economy’s direction, pointing out that the pace of recovery will depend on how quickly confidence returns. It is worth noting that the BSP has cut rates nine times since August 2024, for a total 225 Continued on A2
PHL EYES 11 MORE LOAN DEALS, FOR TOTAL $2.41B, WITH JAPAN By Reine Juvierre S. Alberto
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HE Philippines is targeting the signing of 11 additional loan agreements amounting to $2.41 billion with Japan this year, according to Finance Secretary Frederick D. Go. Speaking at the 42nd annual joint meeting of the Philippine and Japan Economic Cooperation Committees on Thursday, Go said both governments are aiming to finalize 11 more financing agreements worth ¥371.31 billion, or about $2.41 billion within the year. This will be on top of the anticipated signing of the three financing agreements totaling ¥243.31 billion, or $1.58 billion, to be extended by the Japan International Cooperation
$13.96B
Total loan and grant commitments from Japan as of end-December 2025 Japan remains the Philippines’ largest provider of Official Development Assistance (ODA)
Agency (JICA) as Japan’s fiscal year concludes this March. The financing package will support infrastructure projects, including the Metro Manila Subway and the Central Mindanao Highway, Go said. Continued on A2
By Lorenz S. Marasigan
A
WARNING from technology research firm Gartner that a misconfigured artificial intelligence (AI) system could take down critical infrastructure in a G20 country by 2028 carries even greater implications for smaller economies like the Philippines, according to the chief executive of US-based cybersecurity company Keeper Security Inc. Gartner’s prediction, which Keeper CEO Darren Guccione described as grounded in “structural reality,” points to a growing gap between the speed of AI adoption and the maturity of governance frameworks meant to keep those systems in check. That gap, he said, is wider in markets where regulatory and oversight structures are still developing—and the consequences of falling behind could be severe. “Gartner’s prediction should be more concerning for smaller economies, not less,” Guccione said. “Even in G20 economies with comparatively mature cybersecurity frameworks, AI deployment is advancing faster than governance, oversight and configuration standards can adapt. That structural gap becomes more pronounced in markets
“Controlling who and what can access critical systems is the most immediate safeguard against AI-driven infrastructure failure.”— Keeper CEO Darren Guccione, on the most practical first defense against AI misconfiguration
where regulatory and governance frameworks are still developing.”
Human error
AI systems are increasingly being embedded in energy grids, transportation networks, healthcare platforms and financial services in many countries. The problem, according to Guccione, is not “rogue superintelligence” but something more mundane and harder to detect: “misconfiguration, where human error is amplified by automation and scale.” He explained that AI systems rely on complex webs of privileged accounts, API keys, Continued on A2
Read their lips: Low confidence key factor in growth targets By Justine Xyrah Garcia
T SHELL-EBRATING NEW BEGINNINGS ROSARIO, Cavite—A total of 113 baby sea turtles crawl toward the waters off Isla Bonita, Barangay Silangan 1, at 7 a.m. on February 20, 2026, in a Lunar New Year release led by Municipal Environment and Natural Resources Office (MENRO) head Marconi Austria, with assistance from Nestor Llanoza, chairman of the Isla Bonita Sea Watch. The coastline of Isla Bonita has been a known nesting ground for sea turtles since 2007, prompting authorities and volunteers to regularly monitor and safeguard nesting sites to ensure successful hatching. The hatchlings, protected from egg to shore, symbolized hope and a renewed commitment to marine conservation. PHOTO BY DENNIS ABRINA
HE Philippine government’s growth ambitions could remain out of reach over the next three years, as weak investment and subdued confidence keep expansion below potential, according to economists from the De La Salle University (DLSU). In their latest economic report, the economists projected gross domestic product (GDP) to expand by 4.19 percent in 2026, a modest improvement from the 4.4 percent preliminary expansion recorded in 2025. Economic activity is forecast
“Our results and analysis continue to reinforce a singular narrative: economic pessimism is gradually permeating the economy, acting as a persistent weight on national growth prospects.... We firmly believe that we should not ignore these tell‑tale signs of economic stagnation.”— DLSU Report of The Philippine Economy February 2026
to expand by 2.5 percent in the first quarter, improving to 3.8 percent in the second and 4.5 percent in the third, before quickening to 5.9 percent in the fourth quarter. “This outlook suggests a relatively steady economic recovery as the year progresses. With this, we expect conditions to gradually improve, with growth projected to increase to 5.34 percent in 2027 and 5.3 percent in 2028,” the authors noted. Even with the expected rebound, however, they cautioned that expansion will likely remain below the government’s mediumterm targets.
The Cabinet-level Development Budget Coordination Committee (DBCC) had earlier set a revised 5- to 6-percent growth goal for 2026, a 5.5- to 6.5-percent range for 2027, and retained a 6- to 7-percent objective for 2028. “Despite this gradual recovery, the government’s official growth targets will likely remain elusive,” the economists noted. Investment is seen as the main drag on growth, with capital formation projected to contract by 9.25 percent in 2026 after nearly stagnating last year. The decline is expected to persist into 2027 and Continued on A2
PESO EXCHANGE RATES n US 57.9640 n JAPAN 0.3740 n UK 78.0717 n HK 7.4179 n CHINA 8.3965 n SINGAPORE 45.7201 n AUSTRALIA 40.9110 n EU 68.2526 n KOREA 0.0400 n SAUDI ARABIA 15.4546 Source: BSP (February 20, 2026)