Bangko Sentral ng Pipipinas (BSP) may cut policy rates again at its December meeting, its governor said on Tuesday.
“I can say it is possible,” BSP governor Eli M. Remolona, Jr. he told reporters when asked about the possibility of a rate cut at the Board of Finance.
However, he issued a jumbo decision, noting that the next cut of the action will be another “Baby Step” or 25 points (BPs).
The monetary board brought a 25-BP cut on Oct. 9 its meeting, which brings the Benchmark policy measure
It has significantly reduced borrowing costs by 175 bps since it began its cycle in August 2024.
Another rate decided at the last meeting of the Financial Board this year on December 11 will mark its fifth consecutive cut since April.
Mr. Remolona said they are still thinking whether the growth of the ruble-quarter-turte-terful boddom Ground Domen Domen Domed (GDP) is due to a decrease in demand or supply.
“Ik Supply side, Waming Magagawa Magagawa (If it comes from the supply side, we won’t be able to do anything), “he told reporters on the sidelines of the conference of financial stakeholders,” Therefore, we should not find out how much is demanded. “
In the third quarter, the Philippine economy grew by 4%, the slowest growth in more than four years, as corruption weighed on government spending and weakening investor and consumer confidence.
In a nine-month period, GDP growth reached 5%, below the government’s target of 5.5-6.5% for the year.
At the time, the central bank chief said the Monetary Board was still deciding whether to cut the banks’ The reserve requirement ratio (RRR).
“PINAG-isiphan PA ‘Yun … Inaayos PA Namin’ Yung to be taken down noise how to do it Kung Gaano Karami, Kung Sobra-Sobra. Kasi pag binaba mo yung a depository Dadami Pa ‘Yung Liquidity (Still under consideration … We are still in the process of adjusting the system (to see) how much, if it reduces the Reserve,” said Mr. Remolona.
In February, the BSPs cut Universal and Commerce banks and non-Quasi financial institutions for Quasi-Banking activities’ RRR by 5 BPs to 5%. Digital Banks’ RRR was reduced by 150 BPS to 2.5%, while thrift Banks’ RRR was reduced by 100 bps to 0%.
The RRR cut came into effect the week of March 28.
Also, Mr. Remolona said they are not worried about the recent movements of the Peso but noted that they have been a little involved in the foreign exchange market.
“Konti Lang, Para Lang Mavulo Masadaya (Just a little bit, so it doesn’t help much), he said.
The BSP chief previously said that they will only intervene if the peso depreciates so much that it is inflationary.
On Tuesday, the local unit weakened to P58.985 against the dollar, up 5.4 centavos from its P58.931 at its close on Monday, data from the Bankers Association of The Philippines showed.
On November 12, the peso hit a record low of P59.17 against the Greenback. – Katherine K. Chan
