MANILA – The Philippine economy remains capable of withstanding another increase in interest rates if needed, Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. said.

Asked whether the economy could still handle further monetary policy tightening, Remolona replied: “Kayang-kaya pa (It still can).”

The BSP’s Monetary Board last month raised its key policy rates by 25 basis points, citing persistent inflationary pressures driven by elevated global oil and fertilizer prices.

Following the adjustment, the central bank’s target reverse repurchase (RRP) rate now stands at 4.75 percent. The overnight deposit and overnight lending facility rates were likewise increased to 4.25 percent and 5.25 percent, respectively.

Meanwhile, Remolona said the country’s attainment of upper-middle income status reflects the strength of its economic fundamentals.

“Malaking bagay yun ah —6 percent growth for several years (That is a significant achievement —6 percent growth over several years). So some things are, some fundamentals are, there are good fundamentals that are in place. Ang trabaho natin ngayon ay ituloy yon tapos sana mabawasan yung inequality, mabawasan yung poverty. Meron tayong fundamentals na magagamit (Our job now is to sustain that momentum and, hopefully, reduce inequality and poverty. We have the fundamentals to work with),” he said.