5 months Untimely RRR cut is not pro-growth – BSP official MB |Biz
By Lee C. Chipongian Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa C. Guinigundo said an untimely lowering of banks’ reserve deposits with the BSP will impede economic growth since it could lead to a weaker peso and impact on inflation outlook. Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa C. Guinigundo “As in 2018, the additional liquidity released by the RRR (reserve requirement ratio) reduction resulted in higher FX (foreign exchange) activity and significant weakening of the peso. That also worsened both actual inflation and inflation expectations. This outcome is not impossible to happen again this year,” warned Guinigundo. ... more