The Bangko Sentral ng Pilipinas (BSP) is closely monitoring the possible economic impact of the flood control controversy and rising global uncertainties, even as foreign investors continue to show what officials described as “cautious optimism” toward the Philippine economy in 2026.
BSP Deputy Governor Zeno Ronald Abenoja said investor interest has not disappeared despite recent headwinds, with several sectors still drawing attention.
“We continue to receive interest in renewable energy, electronics, the property sector and the financial sector,” Abenoja said during a media briefing in Dumaguete City, Negros Oriental.
“These are still opportunities for foreign investors to come in. They are most likely just waiting to see what will happen with the investigations and the reforms the government wants to implement.”
To better capture business and consumer sentiment amid uncertainty, the BSP will increase the frequency of its Business Expectations Survey (BES) beginning in the first quarter of 2026. The survey, which tracks outlooks on inflation, exchange rates and expansion plans, will shift from quarterly to monthly reporting.
The central bank also plans to conduct the Consumer Expectations Survey (CES) more often to better understand how households perceive inflation and economic conditions.
“Overall inflation may be slowing down, but there are certain commodities that are more important to consumers and these are what affect their day-to-day lives,” Abenoja said.
“Through these surveys, we can see which products matter most to them and whether those priorities change over time.”
Previous CES data show that consumers are most sensitive to prices of rice, meat, fuel and public transportation.
Meanwhile, BSP Governor Eli Remolona Jr. said a possible interest rate cut remains on the table as early as February, but emphasized a cautious, data-driven approach.
“We will look at the demand side, the supply side, things like that,” Remolona said.
On the timing of any rate adjustment, he added: “There could be a cut, but we’ll see. In February? February. Not two. One meeting at a time.”
Remolona also noted that the BSP continues to watch the policy direction of the U.S. Federal Reserve, which has kept its benchmark rates unchanged.