Moody’s: Easing alone won’t revive economy
T
WORLD » A11
TRUMP INVOKES PAYMENTS CRISIS FOR NEW TARIFFS, BUT ECONOMISTS SEE NO PRECIPICE
ROTARY CLUB OF MANILA JOURNALISM AWARDS
2006 National Newspaper of the Year 2011 National Newspaper of the Year 2013 Business Newspaper of the Year 2017 Business Newspaper of the Year 2019 Business Newspaper of the Year 2021 Pro Patria Award PHILIPPINE STATISTICS AUTHORITY 2018 Data Champion
HE Bangko Sentral ng Pilipinas (BSP) may no longer be pressured to continue easing monetary policy as restoring confidence in the Philippine economy now hinges on greater transparency, stronger governance, and credible policy direction. “Rate cuts may only contain the economic slowdown but it will take greater transparency, stronger governance, and credible policy direction, to restore confidence,” Moody’s Analytics said on Monday. As such, Moody’s said: “The easing cycle is likely nearing its limit.”
During its first policy meeting for 2026 held on February 19, the central bank decided to cut its benchmark rate by 25 basis points anew, bringing key interest rates down to 4.25 percent. The cut followed “disappointing” fourth-quarter GDP growth which weakened domestic demand and confidence in the recent months. “With inflation subdued, the bank had room to prioritize growth without jeopardizing price stability,” Moody’s Analytics noted. “Much of the recent softness reflects deteriorating business and
consumer confidence amid a controversy over the misuse of government funds for flood control projects,” it also pointed out. In a televised interview on Monday, Rizal Commercial Banking Corp. (RCBC) chief economist Michael L. Ricafort said that while monetary policy can help drive economic growth by lowering borrowing costs and spurring demand for loans and boosting investments, “The number one catalyst that would lead economic recovery and growth would be catch-up spending.” “And of course, it’s already hinged and based on better gover-
nance standards, anti-corruption measures,” added Ricafort. He explained that while rate cuts can help, the interest differential of the Philippines with the United States is already at the “narrowest on record” at 50 basis points. “BSP rate at 4.25, that’s the lowest in three and a half years since August of 2022, with a total cuts of 225 basis points. That’s, compared with the Fed funds rate, the US interest rate at 3.75. So, 3.75 in the US, 4.25 for us. That’s already the narrowest on record,” Ricafort pointed out, adding that See “Economy,” A2
BusinessMirror A broader look at today’s business
EJAP JOURNALISM AWARDS
BUSINESS NEWS SOURCE OF THE YEAR
(2017, 2018, 2019, 2020, 2021) DEPARTMENT OF SCIENCE AND TECHNOLOGY
2018 BANTOG MEDIA AWARDS
GEOPOLITICAL RISKS ARE HIGH ON EXPERTS’ RADAR www.businessmirror.com.ph
A
n
Tuesday, February 24, 2026 Vol. 21 No. 135
P25.00 nationwide | 2 sections 26 pages | 7 DAYS A WEEK
By Andrea E. San Juan @andreasanjuan
NALYSTS are now closely watching the developments between the United States and Iran, as further escalation could result in higher oil prices and potentially trigger an uptick in the prices of commodities in the Philippines, a netimporting country. “That’s the geopolitical risk that everybody else is anticipating right now, because Trump
gave a timeline for Iran to agree to a nuclear agreement or deal See “Geopolitical,” A2
BIG TECH DATA DOMINANCE STIFLES COMPETITION–PCC By Bless Aubrey Ogerio
D
@blessogerio
ATA-heavy practices by major digital platforms are making it harder for new players to enter the market, potentially weakening competition and raising privacy concerns for Filipino consumers, the Philippine Competition Commission (PCC) warned. In a recent market study, the PCC found that dominant platforms such as Facebook and Google are able to use their control over vast amounts of user data to reinforce their market
positions. This concentration of data, the commission said, gives established firms an advantage that smaller or newer competitors cannot easily match. The study also noted that both platforms typically impose “take-it-or-leave-it” privacy policies, offering users little room to negotiate how their personal information is collected and used. “Facebook consolidates data across the Meta ecosystem, including Instagram and WhatsApp, while Google integrates
LOOKING UP TO TAX COMPLIANCE Internal Revenue Commissioner Charlito Martin R. Mendoza looks up at registration certificates and other BIR documents displayed on the ceiling of a stall during the agency’s “friendly CHAT” at 168 Mall in Binondo, Manila, promoting voluntary tax compliance among business owners. Story in B3 Banking, “BIR’s January take inched up on tax compliance.” REINE ALBERTO/BM
See “PCC,” A2
PHL external debt load drop: Not exactly relief
D
FIELDS OF GOLD A farmer inspects his ripening golden rice field in Gabaldon, Nueva Ecija, with the Sierra Madre mountain range rising in the background ahead of harvest. As planting and harvest cycles continue across the country’s rice belt, the National Food Authority (NFA) reported that it auctioned off nearly 90 percent—or 32,500 metric tons—of its aging rice stocks in its third tender. The move is intended to free up warehouse space in preparation for fresh palay procurement from local farmers, part of efforts to stabilize supply and support farmgate prices. Nueva Ecija, widely regarded as the Philippines’ “Rice Granary,” plays a critical role in national food security amid ongoing market and buffer stock adjustments. NONIE REYES
ESPITE the sharp decline in Philippines’s external debt service burden (DSB) in the 11-month period last year, an analyst warned against being complacent as interest payments are still high. Jonathan L. Ravelas, senior adviser at Reyes Tacandong & Co., said: “The sharp drop in the external debt service burden tells us the Philippines had much less pressure to pay foreign debt in 2025, mainly because big principal repayments were lower.” Ravelas said this is good news as this eases demand for dollars, supports the peso and frees up some policy space. He cautioned, however: “But we shouldn’t be complacent: interest payments are still high, so this looks more like smart debt timing
than permanently cheaper debt.” Moving forward, he said the key is to keep borrowing disciplined— favor longer tenors, manage interest costs, and avoid letting future maturities “bunch up” again. He said this after BSP data showed that the Philippine external debt service burden (DSB) dipped by 22.82 percent to $12.02 billion in the January to November 2025 period, from $15.57 billion in the same period in 2024. DSB is the total principal and interest payments the country has to pay after the debt has been rescheduled. The bulk of the DSB during the 11-month period in 2025 consisted of interest payments amounting to $7.248 billion, a 1.6-percent yearon-year decline from $7.365 billion.
On the other hand, principal payments went down by 41.87 percent year-on-year to $4.770 billion from $8.206 billion in the same 11-month period of 2024. For his part, Rizal Commercial Banking Corp. (RCBC) chief economist Michael L. Ricafort said the sharp drop in the DSB is “largely due to lower maturities of foreign debt in terms of principal payments versus year-ago levels.” For the coming months, Ricafort said lower foreign borrowings in the total borrowing mix of the National Government—to reduce foreign exchange risk and possible further rate cut/s by the Federal Reserve—would “further lead to reduced foreign debt servicing bill.” In terms of ratios, the DSB to export shipments ratio declined to 20.7 percent in January to Novem-
ber 2025, from the 30.6 percent posted in the same period in 2024. The BSP also said the DSB to Exports of Goods, and Receipts from Services & Primary Income ratio, declined to 8.3 percent in the first 11 months of 2025 from the 11.5 percent posted in the same period in 2024. Latest BSP data showed the DSB to GDP ratio declined to 2.9 percent in January to September 2025 from the 3.9 percent recorded in the same period of 2024. BSP data also showed the DSB to Gross National Income (GNI) ratio declined to 2.5 percent in the ninemonth period of 2025 from 3.4 percent in the same period of 2024. The central bank explained that the debt service burden consists of principal and interest payments on See “Debt,” A2
PESO EXCHANGE RATES n US 58.1350 n JAPAN 0.3749 n UK 78.4416 n HK 7.4398 n CHINA 8.4213 n SINGAPORE 45.8985 n AUSTRALIA 41.1421 n EU 68.5470 n KOREA 0.0402 n SAUDI ARABIA 15.4986 Source: BSP (February 23, 2026)