BSP’s Diokno hints at possible quarterly cuts in banks’ reserve requirement
Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno on Tuesday hinted at the possibility of easing the reserve requirement ratio once every three months during the next four quarters.
"If we have to ease, it's because it's really our reserve requirement ratio is very high. It's one of the highest in the world," he said in an interview aired on ANC television.
"I think there's room for monetary easing. It could be 1 percentage point every quarter for the next four quarters. We'll look at the data and see," he added.
However, Espenilla passed away in February after battling tongue cancer for more than a year.
Diokno noted that the proper timing must first be considered before the reserve requirement ratios are reduced.
"Because every time we reduce our reserve requirement by 1 percent, that results to about 90 to a hundred billion pesos in the economy," he explained. — Jon Viktor D. Cabuenas/RSJ, GMA News