British Chamber welcomes easing of interest rates

Philstar.com

February 21, 2026 | 3:03pm

The British Chamber of Commerce Philippines (BCCP) welcomed another interest rate cut by the Bangko Sentral ng Pilipinas (BSP) by 25 basis points (bps) to 4.25%, bringing a total of 225 bps reduction since August 2024.

The Chamber anticipates this strategic move to further drive economic growth recovery amidst an upward trend in inflation, weak infrastructure spending, and other global and domestic risks. 

In an interview, BCCP Executive Vice Chairman Chris Nelson said that, “I think this year is important and reducing interest rates was a very good move. Let us see if that brings back economic growth, because that is important to get the Philippines’ growth right back to about 5.5%.”

He added that despite a slow economic growth, the Philippines is still expected to remain the second fastest-growing economy in Southeast Asia, with the Asian Development Bank’s forecast of 5.3% GDP growth, significantly above than Indonesia at 5.1% and Cambodia at 5.0%. 

Nelson welcomed the government efforts on managing inflationary pressures despite accelerating in January 2026 at 2.0% which remains ‘manageable’ and is expected to further increase “due largely to supply-side factors” according to BSP Governor Eli Remolona.

The Chamber has recently engaged with the Department of Finance to discuss its advocacy on food supply and inflation as well as identified how the UK can further assist. According to the Philippine Statistics Authority (PSA), food inflation witnessed a downward trend of 0.7% from 1.2% in December 2025. 

One of the key commodities from the UK remains meat and meat preparations valued at £31.7 million, marking the Philippines as its 2nd top market in Asia, next to China.

“The Philippines, all credit in terms of the work on inflation, that they were able to reduce interest rates. In that context, it is not just the problem of the Department of Finance or the Department of Agriculture. One of the areas they highlight is the work on the agriculture sector and strengthen it. High quality and reliable supply of imports from the UK is going to be good.” 

The Chamber closely works with the UK Agriculture and Horticulture Development Board (AHDB) which has made a total of 8 visits to the Philippines since 2021, reinforcing the significance of the Philippine market and its meat sector.

Nelson also looks forward to the government-to-government approach between the UK and the Philippines that also addresses market access and opportunities under the Joint Economic and Trade Committee (JETCO), covering a wide range of sectors including agriculture, renewable energy and infrastructure.

Nelson also encouraged Philippine businesses to take advantage of the UK Developing Countries Trading Scheme (DCTS) to gain access to lowered tariff rates and welcomes the country’s interest in joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). 

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