The Bangko Sentral ng Pilipinas (BSP) may have further room to lower the reserve requirement on banks as a way of easing monetary settings in the coming year, American banking giant JP Morgan said.
In a research note, JP Morgan economist Milo Gunasinghe said the BSP’s decision to keep its overnight policy rates unchanged during the Dec. 17 monetary setting had been in line with market expectations.
“Policy rate cuts have likely run their course. The BSP surprised markets with a 25-basis point cut in November as they likely preempted the strong headwinds following the recent typhoons amid a weak economic recovery,” Gunasinghe said.
This year, the BSP has slashed its overnight pol…
Keep on reading: BSP still has room to cut bank reserve requirement