MANILA — 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