April rate cut ‘on the table’, Remolona says

Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. speaks to members of the Tuesday Club. (Photos by Ian Nicolas P. Cigaral)

MANILA, Philippines — An interest rate cut in April is still “on the table” of the Bangko Sentral ng Pilipinas (BSP), Governor Eli Remolona Jr. said on Tuesday, but monetary authorities would still wait for the March inflation data before making any decisive moves.

At the same time, Remolona said it is possible that the BSP was not yet done with its reduction of the reserve requirement ratio of banks, arguing that the current level of 5 percent was still “too high” despite the jumbo cuts this month and last year.

In an interview hosted by the Tuesday Club, Remolona told reporters that the BSP would continue taking “baby steps” when it comes to easing.

READ: More BSP rate cuts on the table to spur growth

The BSP had decided to keep the policy rate steady at 5.75 percent last month, citing the need to defend the inflation outlook from the unusual uncertainties coming from global trade developments.