Philippine central bank says rate cut possible in December

[MANILA] The Philippine central bank could cut interest rates again in December, governor Eli Remolona said on Tuesday (Nov 18), adding that policymakers were still determining whether the current growth slowdown was driven by demand or supply factors.

The economy grew at its slowest pace in four years in the third quarter as a corruption scandal linked to government infrastructure projects hammered consumer and investor confidence. “I would say it’s possible,” Remolona told reporters when asked about the likelihood of another rate cut at a policy review on Dec 11.

Should the Philippine central bank decide to cut rates, it will only ease by up to 25 basis points, Remolona said. “This is not a hard-landing scenario,” he added.

At a review last month, the Bangko Sentral ng Pilipinas cut its key policy rate for a fourth straight time to help boost growth as it said inflation had become more manageable. REUTERS