By Luisa Maria Jacinga C. jocson, Reporter
Bangko Sentral ng DivePinas (BSP) can reduce interest rates with 50 points (BPS) this year, its maximum official said.
“Seventy-five points can be too many, perhaps 50 BPS. We need a little policy insurance,” BSP Ruler Eli M. Remona, JRONE, JR. He told reporters on the sides in the BSP Media Information information box in Baguio City on Saturday.
Mr Justona said this could be more likely to be brought about 25 BPS in the first half and the second year.
“I think it sounds right, 25 BPS (in a) first half, 25 BPS (in a second part. Not all assembly Identify the policy rate, “add.
Central Bank began to rotate in August last year, to beat borrowing costs about 75 BPS in 2024.
The amount of the money has brought the cut cuts into a direct, which brailing is at 5.75%.
Mr Justona said “There is no need to be a reduction in 100 BPS this year as the world is far away from the” difficult time of arrival “.
“The world’s largest banks learn to do things gradually unless there is a severe coming ship.
On Friday, Mr Remolona said the average rate in the first financial policy of the Finance Board policy on February 13.
The BSP captain said the non-issuing gap could move reduce additional funds.
“Currently, we have a kind of unpleasant gap. It grows less under the dose.
“If the gap is expanded, when it becomes more common, it wanted to recover,” I can hear.
The full Philippine Product (GDP) increased by 5.6% in the year 2024, summarizing the 6-6,5% Government Government.
In a quarter of four, GDP growth increased by 5.2% weak 5.2%, slow print from 4.3% into a second quarter of 2023.
At that time, Mr Justona said and monitored the US FEDERAL ResEEST movement but they do not see the need to cross the US step and the US Bank.
“It is true, it affects what we will do because it affects what happened to the economy, what is priced. It is respectful, affecting what we do but we don’t just copy.
FED, at the January meeting, kept the unchanged diagnosis as expected, after reducing a complete point in 2024. This commented the first suspension from the beginning of its simple cycle in September, Reters said.
RRR cut
At that time, Chief of the BSP said Central Bank looks at another cut cut into the Banks’ Reserve Reserve reset rati (RRR) this year.
The Board of the money seems to reduce the finishing needs of 200 to 5% this year, he said.
“That is the amount we discuss, 200 bps. From 7% to 5% of the largest banks,” said Mr Remona.
This can be brought about at one time year, possible, about June or July.
The Central Bank Reduced The RRR For Universal and Commercial Banks and Nonbank Financial Institutions With Quasin-Banking Functions by 250 BPS to 7% from 9.5%, which started working in the last October.
We also determine RRR of digital banks with 200 to 4% BPS and to avoid three lenders with 100 BPS to 1%. Rural and Royal Ririst is also striked by 100 BPS to 0%.
“In some way, the policy rate is to cut is the last requirements.
“The pleasant thing about the storage requirement affects deposit values ​​and loan amounts. Therefore, it must raise a limited deposit level if you cut the last requirement while reducing loan amounts.
RRR is part of the last days of banks should hold in order to ensure that they may meet debt in the event of a sudden withdrawal. When a bank is required to hold the lower reservation rate, it has many savings for lenders.
From the top of 20% in 2018, Central Bank has reduced the final requirements.
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