{"id":232882,"date":"2019-09-29T04:58:05","date_gmt":"2019-09-29T08:58:05","guid":{"rendered":"https:\/\/canadianinquirer.net\/v1\/?p=232882"},"modified":"2019-09-29T04:58:05","modified_gmt":"2019-09-29T08:58:05","slug":"bsp-cuts-rrr-anew-by-100-bps","status":"publish","type":"post","link":"https:\/\/canadianinquirer.net\/v1\/2019\/09\/29\/bsp-cuts-rrr-anew-by-100-bps\/","title":{"rendered":"BSP cuts RRR anew by 100 bps"},"content":{"rendered":"
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In a statement, the BSP said the latest RRR cut \u201cis in line with the BSP\u2019s broad financial sector reform agenda to promote a more efficient financial system by lowering financial intermediation costs.\u201d (File Photo<\/a>: Bangko Sentral ng Pilipinas\/Facebook<\/a>)<\/figcaption><\/figure>\n

MANILA<\/strong>\u00a0\u2013 Bangko Sentral ng Pilipinas\u2019 (BSP) policy-making Monetary Board (MB) on Friday announced another cut in banks\u2019 reserve requirement ratio (RRR) by 100 basis points effective in the first week of November.<\/p>\n

This brought the RRR of universal and commercial banks (U\/KBs) to 15 percent, thrift banks (TBs) to 5 percent, and rural banks (RBs) to 3 percent.<\/p>\n

The latest cut is on top of the 200 basis points slash in U\/KBs\u2019 RRR, implemented in May (100 basis points), June (50 basis points) and July (50 basis points).<\/p>\n

The RRR of demand deposits and negotiable order of withdrawal (NOW) accounts of RBs and cooperative banks were, in turn, slashed by 100 basis points effective last May 31.<\/p>\n

These moves were targeted to release liquidity into the system.<\/p>\n

Authorities said a 100 basis points cut in RRR of U\/KBs is expected to infuse about PHP90 billion worth of liquidity into the system.<\/p>\n

In a statement, the BSP said the latest RRR cut \u201cis in line with the BSP\u2019s broad financial sector reform agenda to promote a more efficient financial system by lowering financial intermediation costs.\u201d<\/p>\n

\u201cAt the same time, the adjustment in reserve requirement ratios is aimed at increasing domestic liquidity in support of credit activity,\u201d it said.<\/p>\n

The additional cut in banks\u2019 RRR this year has been expected by some economists and was announced a day after the MB cut the BSP\u2019s key policy rates by another 25 basis points on Thursday, which brought the overnight reverse repurchase (RRP) rate to 4 percent.<\/p>\n

However, some economists still forecast an additional cut in BSP\u2019s key policy rates before the end of the year.<\/p>\n

UnionBank chief economist Carlo Asuncion told the Philippine News Agency (PNA) that \u201cfurther easing is definitely on the table\u201d and he forecasts this to be around 25 basis points.<\/p>\n

\u201cBSP will definitely weigh on September inflation print next week and inflation expectations in the coming months\u2026It can potentially be this November and December,\u201d he added.<\/p>\n

Relatively, despite keeping its forecast for a hold in the BSP key rates in the remaining months of the year, Fitch Solutions raised the possibility of another 25 basis points reduction before the year ends on account of the impact of the trade tensions overseas and the base effects of the high inflation rate in 2018.<\/p>\n","protected":false},"excerpt":{"rendered":"

MANILA\u00a0\u2013 Bangko Sentral ng Pilipinas\u2019 (BSP) policy-making Monetary Board (MB) on Friday announced another cut in banks\u2019 reserve requirement ratio …<\/p>\n","protected":false},"author":44,"featured_media":151970,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[],"class_list":["post-232882","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","mauthors-joann-villanueva","mauthors-philippine-news-agency"],"_links":{"self":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/232882","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/comments?post=232882"}],"version-history":[{"count":1,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/232882\/revisions"}],"predecessor-version":[{"id":232883,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/232882\/revisions\/232883"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media\/151970"}],"wp:attachment":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media?parent=232882"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/categories?post=232882"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/tags?post=232882"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}