BSP Gov. Diokno hints of more interest rate cuts

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno on Thursday hinted of further monetary easing cycle as inflation environment is expected to be benign in 2020.

During the bi-weekly GBED Talks in Manila, Diokno said monetary authorities are still considering around 50-basis points reduction in key policy rates this year.

“It looks like petroleum prices will continue to go down. Food prices, rice especially, will continue to go down,” the BSP chief said.

ONGOING: Bangko Sentral ng Pilipinas Governor Benjamin Diokno’s GBED Talks press chat. pic.twitter.com/JDnNL05nPB

— Ted Cordero (@Ted_Cordero) January 30, 2020

In 2019, the Monetary Board slashed interest thrice for a total of 75 basis points as the central bank moved to relax the tightening cycle in 2018 when inflation rate soared to years-high.

“In 2018, we raised interest rates by 175 basis points.  We have already cut by 75 basis points and we still have a long way to unwind, so that’s it,” Diokno said.

The central bank chief also reiterated his commitment to relax bank’s reserve requirement ratio to a single digit until the end of his term in 2023. —LDF, GMA News