Bangko Sentral ends interest rate,

reserve requirement cutting for

2019
ABS-CBN News
Posted at Nov 04 2019 11:43 AM | Updated as of Nov 04 2019 12:10 PM

MANILA -- Bangko Sentral ng Pilipinas Governor Benjamin Diokno on Monday signaled an end to
monetary policy easing for the year, with inflation and economic growth within target.

The central bank will "pause for a while" after slashing the benchmark interest rate by 75 basis
points, bringing it to 4 percent, and reducing the reserve requirement ratio for banks to 14 percent,
Diokno told ANC.

"There will be no policy cuts this year and no more relaxation of the reserve requirement," Diokno
said.

Diokno said the economy likely grew 5.8 to 6 percent in the third quarter, buoyed by state spending.
Growth in the fourth quarter could accelerate to 6.5 percent, bringing the full year average to "close
to 6 percent," compared to the government target of 6 to 7 percent.

The immediate passage of the second round of tax reforms aimed at corporate duties will help attract
more investments, he said.

"We are still forecasting close to 6 [percent], that’s the low end of the GDP target. That’s good
enough. Still one of the fastest growing economy. The Philippines will still be one of the fastest
growing economy in the world," he said.