BSP: PH in Good Position to Support Growth amid Trade Shocks

​The Philippines is well-positioned to support economic growth, a key advantage amid ongoing global trade shocks*, according to Bangko Sentral ng Pilipinas (BSP) Deputy Governor for the Monetary and Economics Sector Zeno Ronald R. Abenoja.

​Speaking on behalf of BSP Governor Eli M. Remolona, Jr. at a joint policy forum organized by the BSP and the Philippine Institute for Development Studies (PIDS), Abenoja emphasized that the country’s current inflation rate of 1.4% (as of April 2025) allows the bank to lower interest rates.
 
“Low inflation gives us extra degrees of freedom to ease monetary policy and support growth,” Governor Remolona said in the speech delivered by Abenoja. “Trade shocks are more damaging than supply shocks. Left unchecked, they can erode decades of hard-won progress.” The forum was held at the BSP Head Office in Manila on 26 May 2025.
 
Themed “Seizing the Shift: Navigating Trump’s Reciprocal Tariffs,” the event convened key stakeholders from government, industry, and the academe to assess the evolving global trade environment, particularly the high and unpredictable tariffs by the United States.  Monetary Board Members Romeo L. Bernardo and Jose L. Querubin, and BSP Assistant Governor Maria Margarita D. Gonzales also attended the event.
 
Discussions focused on the restructuring of global trade patterns, the Philippines’ comparative advantages, and vulnerable and high-potential sectors. Participants explored strategic and coordinated policy responses to enhance the country’s integration into global value chains.
​
* Trade shocks are defined here as net gains or losses from trade caused by changes in international prices and in the volume of goods and services that are traded internationally. It relates to shifts in global markets typically outside of the influence of individual countries.