MANILA: The Philippine central bank will make another 25 basis point cut in policy rates before the end of the year as it expects prolonged global monetary easing, its governor said on Tuesday.
"Another 25 basis points before the end of the year," Bangko Sentral ng Pilipinas Governor Benjamin Diokno replied when asked at an economic forum if there are more rate cuts in the offing.
The Philippine central bank cut its benchmark interest rate by 25 basis points, its second this year, to 4.25% on Aug 8. It kept the door open for further easing to boost the economy, which grew at its slowest in 17 quarters in April-June.
Diokno added that further cutting banks' reserve requirement ratio (RRR) is a "live issue". The central bank has announced that further RRR reductions, which would release more money to the economy, can be expected before its Sept 26 policy meeting.