Oil shock may trigger policy response – BSPAs Inflation risks resurfaceMANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) warned that a fresh surge in global oil prices driven by tensions in the Middle East could prompt policy action, as risks to inflation and financial stability re-emerge after a period of easing. “But if we see further disruptions in supply chains, further increases in prices, particularly oil prices, and that could persist for some months, then that may prompt the Monetary Board to consider policy action moving forward,” he said. At its February meeting, the BSP cut policy rates by 25 basis points as domestic conditions supported a more accommodative stance. The third transmission channel is through commodity prices, particularly oil, which could spill over to domestic prices and push inflation higher. He said a more adverse scenario, particularly if global oil prices stay above $100 per barrel, could push inflation beyond four percent.

Source: Philippine Star March 18, 2026 02:30 UTC