BSP to rely on Fed for rate direction, says finance chief

AFTER TRUMP WIN

- By LOUISE MAUREEN SIMEON

The Philippines will likely monitor how the US Federal Reserve adjusts its policy, especially as Donald Trump returns to the White House.

In a forum yesterday, Finance Secretary and Monetary Board member Ralph Recto said the government has created a more conducive environment for growth and investments after the Bangko Sentral ng Pilipinas (BSP) reduced key interest rates.

In August, the BSP moved ahead of the Fed and finally eased rates by 25 basis points. It delivered another rate cut of 25 basis points last month as inflation pressures receded.

Recto maintained that more rate cuts are expected in the coming months. But he said such a move will have to be reviewed given recent developments.