Go likely to bring dovish but pragmatic voice to policy-setting Monetary Board

By Katherine K. Chan, Reporter

FINANCE SECRETARY Frederick D. Go is expected to bring a dovish voice favoring expansionary policy to the Monetary Board (MB) given his private sector background, analysts said

“Secretary Go (is expected) to bring more diversified views to the MB, given his strong business and investments background,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“In view of this, he is expected to be pro-business, pro-industry, pro-economic growth, pro-investments, so he could be more dovish.”

Last week, Mr. Go officially joined the central bank’s seven-member policymaking body as he was sworn into his post by Bangko Sentral ng Pilipinas (BSP) Governor and Monetary Board Chair Eli M. Remolona, Jr.

The new Finance chief, who was previously the special assistant to the President for investment and economic affairs, took over the seat previously held by now-Executive Secretary Ralph G. Recto as the representative of the Cabinet in the Monetary Board.

“Given Secretary Go’s experience as an industrialist, his recommendations and priorities, I expect, would be expansionary,” Reinielle Matt M. Erece, an economist at Oikonomia Advisory and Research, Inc., said in a Viber message.

This is as lower borrowing costs can help boost the economy through increased private spending and investments, which can also create more jobs, he said.

For his part, John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said Mr. Go’s addition to the Monetary Board would strengthen policy coordination between fiscal and monetary authorities, even as the central bank’s focus remains on its primary mandate of maintaining price and financial stability.

“This can actually improve policy coherence, especially in periods of fiscal stress or economic transition,” Mr. Rivera said in a Viber message.

“Given his industry and private sector background, he may lean pragmatic rather than strictly dovish or hawkish, supportive of growth when conditions allow, but mindful of inflation risks and market credibility. This suggests a data-dependent, cautious approach, favoring calibrated easing when inflation is under control and restraint when stability is at risk, rather than aggressive policy shifts.”

Jonathan L. Ravelas, a senior adviser at Reyes Tacandong & Co., said the Finance chief’s entry to the policy-setting Board “brings a strong fiscal lens and an investor mindset.”

“Expect him to push for better coordination between spending and rate policy. He’s likely pragmatic — a hawkish stance when inflation heats up, but leaning dovish to protect growth when conditions allow,” he said.

“In short, flexible and pro-growth, with stability always in focus.”

The Monetary Board will hold its first meeting for this year on Feb. 19.

The BSP on Dec. 11 delivered a fifth straight 25-basis-point (bp) reduction in benchmark interest rates, bringing the policy rate to an over three-year low of 4.5%.

It has lowered borrowing costs by a total of 200 bps since its rate-cut cycle began in August 2024.

Mr. Remolona has left the door open to one more 25-bp cut this year that would likely mark the end of their current easing round to help boost domestic demand and spur economic recovery.

The Monetary Board will hold its first policy meeting for this year on Feb. 19.

Lingering governance concerns due to a corruption scandal involving state infrastructure projects have dragged both public and private investments, causing Philippine gross domestic product growth to slump to a four-year low of 4% in the third quarter of 2025.

Mr. Remolona earlier said GDP expansion likely averaged 4.6% in 2025, well below the government’s 5.5%-6.5% full-year goal, which economic managers have already said could be difficult to reach.

He also said growth could pick up to 5.4% this year, within the government’s revised 5%-6% target, and then to 6.3% in 2027 versus the 5.5%-6.5% goal.