BSP seen cutting rates, RRR anew as economy shrinks again in 4th quarter
MANILA - The Bangko Sentral ng Pilipinas may cut its policy rate again or further reduce banks' required reserve ratio as the Philippine economy again shrinks in the fourth quarter, an economist said on Thursday.
“As soon as Q4 figures will come out, which will still be negative, there will be reason to ease further. We are looking at 25bps cut in policy rates, and or RRR," said University of Asia and the Pacific economist Victor Abola.
The cut will happen "after inflation goes below 2.5 percent or lower in February, toward end of Q1,” Abola added.
The BSP has …
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