(Bloomberg) — Philippine central bank Governor Benjamin Diokno said another policy rate cut of at least 25 basis points could come as early as this month.
A cut in banks’ reserve requirement ratio may also come this month or in October, with a reduction possible at the Sept. 26 rate meeting, Diokno told reporters in Tarlac province north of the Philippine capital on Friday.
Diokno, who has cut the policy rate by a total 50 basis points this year, has earlier promised to trim the rate by at least another quarter-of-a-percentage point before yearend. The Philippines raised the key rate by 175 basis points in 2018.
- The inflation picture “is getting brighter and brighter,” Diokno said as consumer price gains fall within the central bank’s target range. Inflation may fall below 2% again in September and October because of base effects, he said
- Latest data showed the Philippine economy grew 5.5% in the second quarter, the slowest since 2015; inflation was at 1.7% in August, its lowest point since 2016
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