Manila Bulletin
On BSP rate cut: Act now rather than later – Diokno
The Bangko Sentral ng Pilipinas (BSP) implemented an off-cycle policy rate reduction of 50 basis points, bringing the key policy rate down to 2.75 percent, effective April 17, 2020.
This marks the third consecutive rate slash this year, with previous reductions totaling 125 basis points.
BSP Governor Benjamin Diokno stated that the rate cut is intended to "strongly encourage lending to various sectors," particularly businesses impacted by the COVID-19 outbreak.
Diokno emphasized the importance of acting sooner rather than later, as monetary policy operates with a lag.
The scheduled May 21 policy meeting has been cancelled, with the next Monetary Board policy meeting set for June 25.
The current 2.75 percent overnight reverse repurchase (RRP) rate is the lowest on record for the BSP since at least 2001.
The BSP has also reduced banks' reserve requirement ratio from 18 percent in 2017 to 12 percent as of March 30 this year.
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