BSP surprise: Another rate cut to push PH economic pedal

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MANILA, Philippines — In a move that few had anticipated, the central bank on Thursday (Nov. 19) cut its key interest rate by a quarter of a percentage point, driving yields deeper into negative territory and saying the Philippine economy needed more support and consumers more confidence after a tepid third quarter growth.

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said that the prevailing low inflation rate regime also gave regulators enough room to release more liquidity into the financial system, hoping that this will accelerate spending.

“Average inflation is seen to settle within the lower half of the target band for 2020 up to 2022, reflecting slower domesti…

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