THe Bangko Sentral ng Pilipinas (BSP) could continue to keep interest rates on hold and instead pursue further reductions in bank reserve requirements to strengthen economic growth.
THe Bangko Sentral ng Pilipinas could continue to keep interest rates on hold and instead pursue further reductions in bank reserve requirements to strengthen economic growth.'Further reduction in the reserve requirement ratio appears more feasible,' Bank of the Philippine Islands senior economist Emilio Neri said.'Keeping interest rates steady could allow the BSP to advance this much-needed reform while supporting the economy with additional liquidity,' he added.
'GDP growth fell below target for a second straight year in 2024, missing the government's 6.0- to 6.5-percent goal at 5.6 percent. This year's target is 6.0-8.0 percent and preliminary first quarter data will be released on May 8.Neri said the window for easing remained limited, given global economic uncertainties and the Philippines' sizable current account deficit. The peso's vulnerability to external shocks could prompt the BSP to refrain from easing to counteract risks.
Pause With Further RRR Cuts Seen
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