The facade of the Bangko Sentral ng Pilipinas on February 15, 2024. Jonathan Cellona, ABS-CBN News

Bangko Sentral ng Pilipinas

Benise Balaoing

ABS-CBN News

<p>MANILA -- The Bangko Sentral ng Pilipinas (BSP) on Wednesday said Fitch Ratings has recognized the progress it has made in bringing down Philippine inflation.</p><p>In a statement, the BSP said Fitch noted how the BSP helped bring inflation down to an average of 3.2 percent from January to November, from the 6 percent average in the same period last year. </p><p>Fitch said this in a credit update report, which is different from a rating action press release where it announces a credit rating action. Fitch kept its &#x27;BBB&#x27; investment-grade credit rating and stable outlook for the Philippines in <a href="https://www.abs-cbn.com/business/2024/6/10/fitch-keeps-bbb-rating-stable-outlook-for-ph-942" rel="noopener noreferrer" target="_blank">June</a>. </p><p>Inflation in the Philippines soared to <a href="https://www.abs-cbn.com/business/02/07/23/inflation-quickens-to-87-percent-in-january-2023" rel="noopener noreferrer" target="_blank">8.7 percent</a> in January 2023 as food, water, electricity, and housing rental costs climbed. In the same year, the Bangko Sentral raised rates three times--by a total of <a href="https://www.abs-cbn.com/business/10/26/23/bsp-makes-off-cycle-25-bps-rate-hike-amid-inflation-risks" rel="noopener noreferrer" target="_blank">100 basis points</a>--in order to curb the rising prices of commodities.</p><p>Inflation started slowing in 2024, and the central bank cut rates in <a href="https://www.abs-cbn.com/business/2024/8/15/bangko-sentral-cuts-interest-rates-819" rel="noopener noreferrer" target="_blank">August</a> as it noted that the balance of risks to inflation has shifted to the downside for 2024 and 2025. The BSP cut key rates anew in <a href="https://www.abs-cbn.com/business/2024/10/16/bangko-sentral-cuts-benchmark-rate-by-25-basis-points-1240" rel="noopener noreferrer" target="_blank">October</a>.</p><p>Inflation picked up anew to 2.5 percent in <a href="https://www.abs-cbn.com/news/business/2024/12/5/inflation-quickens-to-2-5-percent-in-november-0911" rel="noopener noreferrer" target="_blank">November</a>, from 2.3 percent in October, after a series of storms pushed up the prices of several food items.</p><p>BSP Governor Eli Remolona earlier said the central bank may cut interest rates by another 25 basis points in its last policy-setting meeting this year. </p><div><a href="https://www.abs-cbn.com/business/2024/11/19/another-rate-cut-seen-next-month-bsp-gov-1112" rel="noopener noreferrer" target="_blank">Another rate cut seen in December: BSP chief</a></div><p>This would bring the cumulative cuts for 2024 to 75 bps and the benchmark rate to 5.75 percent.</p><p>Fitch’s report comes after debt watcher S&amp;P revised its investment grade rating on the Philippines and raised its outlook on the country to positive from stable in November.</p><div><a href="https://www.abs-cbn.com/news/business/2024/11/26/s-p-affirms-philippines-investment-grade-rating-raises-outlook-to-positive-1749" rel="noopener noreferrer" target="_blank">S&amp;P affirms Philippines&#x27; investment-grade rating, raises outlook to positive</a></div><p>Japan-based ratings agencies Japan Credit Rating Agency and Rating and Investment Information, Inc. (R&amp;I) have also given the Philippines &quot;A-&quot; ratings.</p><div><a href="https://www.abs-cbn.com/business/2024/11/19/another-rate-cut-seen-next-month-bsp-gov-1112" rel="noopener noreferrer" target="_blank">PH gets second &#x27;A&#x27; credit rating from Japan agency; eyes upgrade from other major debt watchers</a></div><div><strong>RELATED STORY:</strong></div><div><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="640" height="360" src="https://www.youtube.com/embed/ZUrJuWwrWMM?&amp;ab_channel=ANC24%2F7autoplay=1&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span><br/></div>

<p>The Bangko Sentral said Fitch Ratings has recognized the progress it has made in bringing down Philippine inflation.</p>

The Bangko Sentral said Fitch Ratings has recognized the progress it has made in bringing down Philippine inflation.

Fitch notes Philippines' progress in bringing down inflation | ABS-CBN

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Fitch notes Philippines' progress in bringing down inflation

Fitch notes Philippines' progress in bringing down inflation

Benise Balaoing,

ABS-CBN News

Published Dec 18, 2024 12:09 PM PHT

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