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Next rate cut may be in Sept: Philippine central bank chief

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Philippine central bank Governor Benjamin Diokno sees further easing this year, with another quarter-point cut in the policy rate coming as early as next month.

[MANILA] Philippine central bank Governor Benjamin Diokno sees further easing this year, with another quarter-point cut in the policy rate coming as early as next month.

"We could cut it within the next six weeks - the next policy meeting - or could be in the first weeks of the fourth quarter," Mr Diokno said in an interview with Bloomberg Television.

Policy makers may also reduce the ratio of deposits banks must hold in reserve by 100 basis points more this year, the governor said.

Bangko Sentral ng Pilipinas resumed its easing cycle on Thursday, cutting the key rate as expected by 25 basis points to 4.25 per cent. Policy makers had made phased reductions totaling 200 basis points to the reserve requirement ratio from May to July, as part of Mr Diokno's goal to bring it down below 10 per cent by the end of his term in 2023.

Bangko Sentral will next meet to set the key rate on Sept 26.

BLOOMBERG

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