'US Fed cut has little effect on BSP moves'

The recent jumbo rate cut from the US Federal Reserve will have minimal impact on the Bangko Sentral ng Pilipinas' mon- etary policy decisions, according to BSP Governor Eli Remolona.

- KEISHA TA-ASAN

"We had largely anticipated the cut. So the cut itself would have little effect on our decisions," Remolona told The STAR.

The US central bank kicked off its widely anticipated easing cycle with a larger-than-expected 50-basis-point interest rate cut on Wednesday. This brought the Fed's benchmark rate to a range of 4.75 percent to five percent, its first reduction in more than four years.

"The subsequent appreciation of the peso along with other currencies seems to be related to the delayed reaction of stock markets," Remolona said.