Philippines May Cut Key Rate by Up to Half Point This Year

  • Central bank chief says quarter-point cut likely in August
  • Philippines may ease ahead of Fed, not worried of peso impact
WATCH: “We would like to reduce the reserve requirement by quite a bit,” Philippine central bank Governor Eli Remolona says.Source: Bloomberg
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The Philippine central bank may lower its key interest rate by a total of 50 basis points this year as price risks moderate, Governor Eli Remolona said Thursday, after keeping it at a 17-year high for a fifth meeting.

The Bangko Sentral ng Pilipinas could begin reducing the benchmark rate with a quarter-percentage point reduction as early as August, Remolona told reporters at an event, following a briefing where he announced the monetary policy decision. Another 25-basis point rate cut may follow, he said.