go through Luisa Maria Jacinta C. Josen, Senior Reporter
Bengal ng pilipinas (BSP) can continue to reduce Interest rates at the meeting Its senior official said, August said.
BSP Governor Eli M. Remolona, Jr. The tax cuts are still on the “desktop” during the next policy review of the Monetary Commission on August 28, told reporters Tuesday.
If realized, this would mark the third consecutive slowdown in delivery by the Central Bank of the Philippines.
BSP has reduced borrowing costs by 125 basis points to date since its easy cycle began last August.
Mr Remolona noted that the next policy meeting will receive key data releases, such as the second quarter gross domestic product (GDP).
He said he expects GDP to expand “about 5.5%” in the second quarter, which will be slightly higher than the 5.4% GDP growth in the first quarter.
The Philippine Bureau of Statistics is scheduled to release the second quarter GDP data on August 7.
The government aims to grow by 5.5-6.5% this year.
Even if the U.S. starts to impose a 19% tax on goods, BSP can continue to slow down The Philippines begins on August 1.
Mr Remolona said the impact of tariffs on the Philippines economy would be “moderate”.
“On a global scale, it’s much clearer now than before. Our problem is more global spillover than the direct effect,” he said.
“Many sectors are tax-free. We are not a huge trade economy This limits the impact on us. ”
New U.S. tariff rates in the Philippines Now the same as Indonesia Slightly below 20% of Vietnam.
Meanwhile, the BSP chief said he will maintain the prospect of two tax cuts this year.
After August, the Monetary Commission held the remaining two meetings, which were scheduled for October and December.
Asked if it was possible to cut the third fee, Mr Remorona said it was necessary to ensure that “very unusual”.
He added that a sharp slowdown in growth was also “unlikely”.
“Growth must slow down greatly…it depends not only on quarterly growth, but on the outlook.”
Meanwhile, Mr Remorona said they were still satisfied with the p57 peso.
“It’s still very powerful,” he said.
The peso depreciated 11 Centavos at a price of P57.31 per dollar on Tuesday, ending on Monday’s P57.20. This is a low in more than a month, or since the closing of P57.58 on June 23.
“As you know, we don’t have a peso goal. I care more about potential Inflation effect. ”
