Cost of Living

BSP pauses easing cycle as oil shock stokes inflation risk

The Bangko Sentral ng Pilipinas may pause its interest rate easing cycle as rising global oil prices amid Middle East tensions threaten to spike headline inflation to 4% or higher in the coming months. If oil prices exceed $100 per barrel and remain elevated, the BSP could implement rate hikes to prevent inflation expectations from de-anchoring, despite the central bank's prior dovish stance and rate cuts totaling 225 basis points since August 2024.