BSP slashes interest rates
Expect lower loan rates from banks in the coming months as the Bangko Sentral ng Pilipinas (BSP) lowered interest rates Thursday.
BSP Governor Benjamin Diokno said the reduction is largely due to a tamer inflation.
However, the rate cut closely follows the disappointing 5.5 percent economic growth that earlier surprised markets.
The key rate will go down to 4.25 percent effective Friday, thanks to another 25 basis points reduction.
Diokno may have crossed over from the fiscal to monetary side, but he brought with him the same optimism he had as Duterte’s economic man.
“Domestically, outlook for growth continues to be firm on the back of projected recovery in household spending and accelerated implementation of the government’s infrastructure spending program, after the delay in expenditures due to the legislative impasse in the approval of the budget in January-April 2019,” Diokno said.