Home Business News No more BSP rate cuts for '19 but possibly for RRR

No more BSP rate cuts for ’19 but possibly for RRR

By Joann Villanueva


MANILA – Philippine monetary officials are done with policy rate easing this 2019 but may possibly slash banks’ reserve requirement ratio (RRR) if inflation decelerates further.

In an interview Tuesday with journalists after his speech at The Asset forum in Taguig City, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said the 75 basis points cut in the central bank’s key rates will be “all” for this year.

However, Diokno said they will consider incoming economic data on inflation and gross domestic product (GDP) vis-à-vis the RRR.

Last September, the rate of price increases decelerated to 0.9 percent from 1.7 percent in the previous month due to a slower rate of the heavily-weighted food and non-alcoholic beverages index, as well as the transport index, due to drop in oil prices.

In the first nine months this year, inflation averaged at 2.8 percent, which was at the lower half of the government’s 2 percent to 4-percent target band until 2021.

Except for the uptick to 3.2 percent last May from 3 percent last April, inflation has been decelerating after it peaked at 6.7 percent in September and October last year.

This allowed the BSP’s policy-making Monetary Board (MB) to reduce key rates following the 175 basis points increase last year to help reign in the supply-side affected inflation rate.

Diokno said he hopes to reduce banks’ RRR to single-digit by the end of his term in 2023.

“We are looking at the data. Kung pwede pa bakit hindi? (If we can slash it (the RRR) more, why not?),” he added. (PNA)



Please enter your comment!
Please enter your name here

- Advertisment -


GMA programs and personalities win ALTA Media Icon Awards

Several GMA shows and personalities won awards in the 5th ALTA Media Icon Awards of the University of Perpetual Help this year. Honored were Kapuso...

Tokyo praises Yulo’s ‘outstanding’ share to PH-Japan friendship

By Joyce Ann L. Rocamora   MANILA -- Gold medalist Carlos Yulo on Thursday received a commendation from the Japanese Embassy in Manila for his historic win...

PCSO donates 45 ambulances to gov’t hospitals, health facilities

By Christopher Lloyd Caliwan   MANILA -- The Philippine Charity Sweepstakes Office (PCSO) on Thursday turned over 45 new ambulance units to various government hospitals and health...

DepEd ‘strongly condemns’ slay try on Bukidnon teacher

By Joyce Ann L. Rocamora   MANILA -- The Department of Education (DepEd) on Thursday strongly condemned the shooting of Zhydee Bitago Cabañelez, an elementary teacher at...

PH soldiers bag silver medal in UK Cambrian Patrol

By Priam Nepomuceno   MANILA -- Eight Philippine Army (PA) Scout Rangers, who participated in the United Kingdom's Exercise Cambrian Patrol 2019 (Ex CP 2019) held in...