BSP rate cut ‘on the table’ in August, says Remolona

Another key interest rate cut is “on the table” as early as Aug. 28, Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. said, with a 25-basis-point reduction being considered.

The Monetary Board’s decision would depend on “whether something very unusual happens like a large cut or slowing of growth,” Remolona told reporters in an interview Tuesday.

“Growth has to slow down dramatically,” he said.

Meanwhile, Remolona said the situation on the 19-percent tariff rate was “much clearer now compared to before.”

“Our issue is more the global spillover effects than the direct effects,” he said, noting the tariff rate could have a “modest” impact on the Philippine economy.

“There are many sectors that are exempt. We’re not a big trading economy, so that limits the impact on us,” Remolona said.

“But growth is already slowing down globally, so that can have some effect. Oil prices are down, so that’s good for inflation,” he said.