Manila: The Bangko Sentral ng Pilipinas (BSP) on Wednesday said it remains data-driven as it monitors the impact of the ongoing Middle East conflict on oil prices, remittances, and inflation.

According to Philippines News Agency, the central bank stated it is assessing risks to domestic inflation and the broader economy ahead of the Monetary Board's rate-setting meeting on April 23, 2026. The BSP emphasized its main mandate of price stability, highlighting its assessment of the potential impact of higher oil prices on the cost of fertilizer, transport fares, and overall inflation.

The BSP also mentioned it is evaluating how developments in the Middle East could affect the country's current account, including remittances, trade, and financial markets. In terms of currency management, the BSP noted its role in the foreign exchange market is to mitigate excessive volatility and maintain orderly conditions.

The BSP clarified that this approach aligns with a flexible exchange rate policy, where intervention is limited to tempering significant fluctuations that could impact inflation instead of defending any specific currency level.