Economics
Philippine Central Bank Chief Ready to Cut Key Rate Below 3%
- Nation’s policy rate at 3.25% is approaching record low of 3%
- Governor sees 2020 inflation closer to lower end of 2%-4% goal
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The Philippine central bank is ready to cut its policy rate to below 3% to support an economy reeling from a “once in a lifetime crisis,” according to Governor Benjamin Diokno.
“It is now clear that reverting to where we were in 2018 — policy rate at 3.0% — is no longer an appropriate policy goal,” the governor said in a mobile phone message reply on Sunday. “A deeper cut is warranted in response to the expected sharp economic slowdown.” The key rate at 3% was the record low for the Philippines.