The January 2026 inflation outturn of 2 percent is within the BSP’s forecast range of 1.4 to 2.2 percent. The inflation outlook continues to be benign while inflation expectations remain well anchored. For 2026 and 2027, inflation is expected to settle within the 3.0% ± 1.0 ppt target.
The Monetary Board noted that the outlook for domestic economic activity has weakened further. Business sentiment has continued to decline on governance concerns and uncertainty over global trade policy. Nevertheless, domestic demand is expected to rebound gradually as the effects of monetary policy easing work their way through the economy and public spending improves.
On balance, the Monetary Board sees the monetary policy easing cycle as nearing its end. Any further easing is likely to be limited and guided by incoming data. The Monetary Board will meet on 19 February 2026 to discuss the evolving assessment of Philippine macroeconomic prospects and their implication to monetary policy. #END
Press Release from: Bangko Sentral ng Pilipinas
