IMF: BSP can further cut interest rates to offset growth risks

The International Monetary Fund (IMF) has advised the Bangko Sentral ng Pilipinas (BSP) that it has room to further cut interest rates to shield the domestic economy from external risks.

During its Article IV consultation with Philippine economic officials last month, the IMF recommended a more expansionary macroeconomic policy stance if downside risks materialize.

The IMF also suggested prioritizing fiscal stimulus towards public capital and social spending programs in adverse scenarios.

On Thursday, the BSP’s Monetary Board reduced key rates by 25 basis points to 3.75 percent.