'One more rate cut possible this year'

Finance Secretary Ralph Recto has signaled that at least one more reduction in policy interest rates is likely this year, saying that both the United States Federal Reserve's monetary stance and the Philippines' inflation trajectory will significantly influence the Bangko Sentral ng Pilipinas (BSP)'s decision.

- By MARCO LUIS BEECH

Recto, a member of the Monetary Board, said a further easing of 25 basis points is possible, labeling it as a "safe approach" for policy rate reduction.

"At least one more rate cut. I can't say for sure. It depends on what happens in the US with the Federal Reserve, and also on our inflation numbers. But clearly, I think we can reduce the policy rate by another 25 basis points," Recto told reporters yesterday.

The BSP trimmed its policy interest rates in August by 25 basis points to five percent, marking its third reduction for this year.