Bangko Sentral ng Pilipinas Governor Eli Remolona said the low end of the government’s 2023 growth target range of 6 percent to 7 percent is still attainable.
Remolona said in a meeting with a group of journalists Tuesday night the BSP shares the government’s optimism on meeting the growth target despite the slowdown in the second-quarter growth of 4.3 percent.
The National Economic and Development Authority estimated that the gross domestic product should grow by at least 6.6 percent in the second half to meet the lower range of the target.
Economists said elevated inflation and interest rates were among the factors that contributed to slower growth in the second quarter. The BSP raised its overnight borrowing rate by a total of 425 basis points in the past two years to contain inflation.
Remolona said the BSP would remain data-dependent and provide forward guidance on its monetary stance as he ruled out any rate cut soon. He said, however, there is room to cut the reserve requirement of banks in the Philippines to make it at par with those of other ASEAN countries.