MANILA – The Bangko Sentral ng Pilipinas (BSP) will make another 25 basis point cut in policy rates before the end of the year as it expects prolonged global monetary easing, BSP governor Benjamin Diokno said on Tuesday.
“Another 25 basis points before the end of the year,” Diokno replied when asked at an economic forum if there are more rate cuts in the offing.
The central bank cut its benchmark interest rate by 25 basis points, its second this year, to 4.25 percent on Aug. 8. It kept the door open for further easing to boost the economy, which grew at its slowest in 17 quarters in April-June.
Diokno said further cutting banks’ reserve requirement ratio (RRR) was a “live issue.” The central bank has announced that further RRR reductions, which would release more money to the economy, can be expected before its Sept. 26 policy meeting. (Reuters)
