A pause in interest rate hikes is likely in the policy meeting of the Bangko Sentral ng Pilipinas (BSP) in May, the Department of Finance (DOF) said. | ManilaBulletin
"The BSP has done enough, in my view,” Finance Secretary Benjamin E. Diokno told reporters after the central bank raised its benchmark interest rate by 425 basis points from 200 basis points last year.
Diokno pointed that the BSP has the highest policy rate increase in the region and the adjustment’s full impact has yet to be absorbed by the economy. “Additionally, BSP has taken back the unprecedented policy move it has adopted during the pandemic that is, treating bank lending to micro, small and medium enterprises as compliant to the reserve requirements,” Diokno said.
“That measure translates to a 200 bps [basis points] cut in reserve requirements. The implied cut has been restored. As a result of these policy moves, while the numbers are tentative, lending, producer and consumer credits appear to have slowed down,” he added.But at the same time, he added that non-monetary measures to ease inflation have to be done to address the problem more effectively.
"At the same time, the peso remains stable, and is likely to appreciate, as the U.S. dollar weakens and as OF [overseas Filipino] remittances, BPO receipts, tourism incomes, and FDI [foreign direct investment] inflows continue to expand,” he concluded.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Investors await signs of PSEi trend reversalInvestors will be looking for reversal signs after the benchmark Philippine Stock Exchange index snapped a multiweek downtrend after the Bangko Sentral ng Pilipinas delivered an expected 25 basis point interest rate increase. | miguelrcamusINQ /PDI
Read more »
BSP: Deposit rates up with key rate hikes | Cai U. OrdinarioTHE successive key policy rate hikes have already passed through to deposits of Filipino account holders, the Bangko Sentral ng Pilipinas (BSP) disclosed. Data shared in a recent briefing from BSP Deputy Governor Francisco Dakila Jr. showed interest rates for short-term deposits have increased by 310 basis points (bps). The…
Read more »
BSP 'leaning towards a pause', says DioknoMonetary authorities could pause from hiking interest rates when they next meet as the impact of the current tightening cycle has yet to be fully felt, Finance Secretary Benjamin Diokno said on Sunday.
Read more »
Pinoy, napuntahan ang 1,634 mga lungsod at bayan sa PilipinasNakumpleto ng isang Pinoy ang pagbiyahe sa lahat ng 1,634 mga bayan at lungsod sa Pilipinas, matapos huling mabisita ang Pag-asa Island sa Kalayaan Island Group ng Palawan.
Read more »
Brownlee leads Gilas Pilipinas’ SEA Games redemption bidAfter a shocking SEA Games run last year, Gilas Pilipinas looks to reclaim supremacy in the region as it unveils a star-studded 28-man pool.
Read more »
Tigers, G Lanterns begin Pilipinas Super League title series | BusinessMirrorEXPECT a dogfight when defending champion Davao Occidental-Cocolife and the Pampanga G Lanterns square off Monday in Game 1 of their best-of-three finals duel for the Manila Bankers Life-Pilipinas Super League Pro Division Second Conference Dumper Cup crown at the Bren Z. Guiao Convention Center in San Fernando, Pampanga. The…
Read more »