MANILA, Philippines — Governor Amando Tetangco Jr. said the Bangko Sentral ng Pilipinas was willing to implement other measures, besides slashing its key policy rates, to help spur business activities and counter the economic downturn.

“The BSP remains open to all possible options that it can use to help address the slowdown in economic activity and the global financial crisis to the extent that the inflation outlook allows,” Tetangco said.

Since December, the BSP has cut its key policy rates by a total of 175 basis points, bringing down its overnight borrowing and lending rates to 4.25 and 6.25 percent, respectively.

Despite this, the central bank earlier hinted it was willing to cut the policy rates some more and bring them down to record lows.

The cut in the central bank’s overnight borrowing rate encourages banks to lend more of their funds, rather than deposit these with the BSP.

The reduction in the overnight lending rate, which is charged by BSP on borrowing banks, influences banks to trim the interest rates they charge their own borrowers.

Besides cutting the key policy rates, Tetangco said the BSP can also implement additional measures to help pump-prime the economy. Tetangco said the BSP has already implemented several measures to ease monetary policy without tinkering with the policy rates, and it was ready to do more.

Tetangco cited the relaxation of rules on rediscounting and cutting the banks’ reserve requirements.