towards Katherine K. Chan
Financial Secretary Ralph G. Recto issued “off-cycle” Move to fiscal policy Despite being weaker than expected growth in the third quarter, but noted There is a high probability of the rate being decided at the next meeting of the Bank.
“I’m not sure about the ‘rotating’ force But there is a good chance to cut the rate before the end of the year,” Mnucto Recto told Businessworld On the sides of the nut man on Thursday.
He said that the monetary board is likely to decide the main policy rate by 25 points (BPs) at the Dece D. 11 meeting.
Asked if there is a chance of a 50-BP cut, Mnucto Reto said: “There is always a chance. Everything depends on what happens.”
Bangko Sentral ng Pilipinas (BSP) Vice Governor Zeno Ronald R. Abenoja was told Businessworld That they did not discuss any financial policy of the financial institution.
“I haven’t heard anything,” she said. “So, it may just be a rumor. As far as I know, there are no negotiations.”
In October, the BSP lowered borrowing costs by 25 BPS to a three-year low of 4.75%. It has so far cut the key policy rate by 175 bps since it began the tapering cycle in August last year.
Best Product Growth-Expected (GDP) Growth in the third quarter again Senign Ightation gives BSP room In another cut in December.
The Philippine economy grew 4% in the third quarter, the slowest growth seen in more than four years or from the first quarter of 2021.
BSP Governor Eli M. Remolona, Jr. In October he said they could cut prices by another 25 BPs at the Dece DECEL meeting
RIMAL Commerce Banking Corp. Economist Michael L. Ricafufort on Thursday said that the third GDP data was released by the assumption of an off-designle interest rate.
Mr Ricafort said it is “possible, but not 100% certain” for the BSP to cut rates ahead of its scheduled meeting on December 11.
“There have been rumors in the market since (Wednesday) about the reduction of money that is not in the cycle, especially the cut of the RRR of the central banks (final rate),” he said in ANOFTER Local GDP Data (November 7), “he said in a Viber message on Thursday.
“Each (each point) cut from the central banks is equivalent to P180-billion of additional liquidity injected into the banking system that can increase lending and other investments such as income or others,” it added.
On February 21, BSP Cut Universal and Commerce Banks RRR by 5 BPs to 5%, effective the week of March 28.
Meanwhile, Mr. Ricafort noted that the latest third-quarter GDP data has caused the PHP (Philippine Peso) Bloomberg benchmark service to depreciate slightly and the peso to fall. lower lows against the US dollar.
On November 12, the peso fell to a new record low after closing at P59.17 Compared to the Greenback, which ended at 18.5 Centavos from P58.585 ending Tuesday.
The BSP chief earlier said they will not intervene in the foreign exchange market unless the peso’s depreciation leads in the pressure of inghtantaries.
“I think the BSP intervenes just because the curve is not too wide,” said Mr. Recto.
“But I’m sure everyone knows that the BSP, to some extent, intervenes in the market to soften the strings.”
He also noted that it is possible that the peso does not weaken further if both the BSP and the US Federal Reserve were to cut in December.
“It all depends on what the Fed does,” said Mr. Recto. “If the Fed cut rates again, then it would be the same.”
Last month, the Fed delivered its second 25-BP cut this year, bringing its interest rate to the 3.75-4% range. This brought its cuts completely 150 BPS from September 2024.
However, the reduction of the Fed remains uncertain as the policymakers weigh concerns about economic data after the President of the economy after US President Donald J. Trump ended the longest government shutdown last week.
