A warning beneath the rating (Part 1: The Signal)
Before the Philippines’ credit outlook was revised, BSP Governor Eli M. Remolona Jr. had already issued a quiet but telling warning. Monetary policy, he said, had largely “reached the limits of its effectiveness” in supporting growth. What comes next would depend on fiscal action and governance. That warning now finds an echo in the decision of Fitch Ratings to revise the Philippines’ outlook from “Stable” to “Negative,” while affirming its “BBB” investment-grade rating.
