Philippines Central Bank Chief Says Open to December Rate Cut
Philippines Central Bank Chief Says Open to December Rate Cut
(Bloomberg) --
Philippine central bank Governor Benjamin Diokno said an interest rate cut is “possible” as early as next month if inflation remains low, just weeks after saying there would be no more monetary easing this year.
The Bangko Sentral ng Pilipinas will be “more confident to do something” if an expected uptick in inflation doesn’t come to pass, Diokno said. Inflation cooled for a fifth straight month in October to 0.8% -- its slowest pace since April 2016 -- and the bank lowered its inflation forecast for the year.
“It would depend on the recommendation of the committee,” Diokno said Tuesday on the sidelines of an award ceremony for small businesses.
The central bank has cut its key interest rate by a total of 75 basis points this year, before holding steady at 4% at its Nov. 14 meeting. Monetary authorities are scheduled to meet again Dec. 12.
--With assistance from Andreo Calonzo.
To contact the reporter on this story: Siegfrid Alegado in Manila at aalegado1@bloomberg.net
To contact the editors responsible for this story: Nasreen Seria at nseria@bloomberg.net, ;Cecilia Yap at cyap19@bloomberg.net, Michael S. Arnold
©2019 Bloomberg L.P.