BSP has scope for 50 bps rate cut, but 25 bps will be the norm -governor

September 30, 2024 - 4:34 PM
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BSP building
Facade of the Bangko Sentral ng Pilipinas in Manila. (BSP/Released)

The Philippines central bank has scope to do a 50-basis point rate cut in one policy meeting, but such a big reduction would only happen if there are worries of a hard landing, its governor said on Monday.

A 25 bps rate cut will be the norm if there is no risk of a hard landing, Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona told reporters at a banking event.

He also said the BSP has moved its rate-setting meeting to Oct. 16 from Oct. 17 because of a scheduling issue.

After announcing a 250 bps reduction in bank’s reserve requirement ratio to 7.0% starting October, Remolona said more cuts could be expected that would bring the ratio to zero before his term expires on 2029.

—Neil Jerome Morales; Editing by Martin Petty