Remolona signals more BSP rate cuts

Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona Jr. said the central bank has plenty of room to cut key interest rates on the back of softer inflation, signaling a potential 50-basis-point (bp) cut by year-end.

- By DERCO ROSAL

"So far, the hard data says we have plenty of room to cut, especially because inflation is low," Remolona said during a press briefing on Friday, May 23.

The country's inflation eased to a five-year low of 1.4 percent in April, according to the Philippine Statistics Authority (PSA). April's figure fell far below the government's target band of two to four percent, but within the BSP's forecast range of 1.3 to 2.1 percent. Last month's figure brought the average rate for the first four months to two percent.