Philippine central bank governor says likely no more rate cuts this year

Credit: REUTERS/Romeo Ranoco

Philippines central bank Governor Benjamin Diokno said on Tuesday that the rate cut policymakers delivered last month, the third of the year, may also be the last of 2019.

MANILA, Oct 8 (Reuters) - Philippines central bank Governor Benjamin Diokno said on Tuesday that the rate cut policymakers delivered last month, the third of the year, may also be the last of 2019.

“Most likely under existing conditions,” Diokno said in a phone message when asked if there will be no more rate reductions this year.

Still, he noted that the decision is not his alone but will be the Monetary Board’s call.

The central bank has two more policy meetings this year, one in November and another in December.

on Sept. 26, the central bank slashed its benchmark interest rate PHCBIR=EC by 25 basis points to support economic growth. A day after, it announced a 100 basis point cut in banks’ reserve requirement ratio (RRR) effective in November.

Diokno said in a speech before businessmen and bankers on Tuesday that the central bank will deliver more cuts in reserve requirement ratio (RRR) “should the inflation outlook continue to improve.”

The latest RRR cut followed the 200 basis points phased reduction in May to July and will bring the ratio to 15 percent.

Inflation eased in September to the lowest in more than three years, putting this year’s inflation target within reach.

(Reporting by Neil Jerome Morales and Karen Lema; Editing by David Gregorio)

((neiljerome.morales@thomsonreuters.com; +632 88418914))

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