Philippine Central Bank Prioritizes Inflation Control Over Structural Economic Reforms Amid Global Oil Crisis

The Philippine Central Bank’s rate hikes exemplify how neoliberal monetary policy, shaped by IMF orthodoxy and fossil fuel dependency, deepens inequality while failing to address systemic vulnerabilities.

Historically, the Philippines’ integration into global commodity chains—exacerbated by IMF structural adjustment—has left it hostage to oil price volatility, a pattern mirrored across the Global South. The central bank’s technocratic framing obscures the role of speculative finance, corporate profiteering, and weak industrial policy, while marginalizing indigenous knowledge, peasant perspectives, and feminist economics. Alternative models, from Costa Rica’s renewable energy transition to Argentina’s heterodox policies, demonstrate that inflation can be managed through targeted interventions rather than blanket austerity. A systemic solution requires reorienting monetary policy toward public investment, price controls, and debt relief, while centering the voices of those most affected by financial shocks. The BSP’s current approach risks entrenching dependency, whereas a green, inclusive industrial policy could build resilience against future crises.