Philippine central bank says less hawkish stance may put pressure on peso


MANILA (Reuters): The Philippine central bank's less hawkish stance may put pressure on the peso but it has not affected the local currency yet, its governor said on Friday.

Bangko Sentral ng Pilipinas Governor Eli Remolona told Bloomberg TV on Friday the central bank is "happy" with the movement of the currency, but it has been intervening in small amounts to keep markets orderly.

The BSP kept rates steady for a fifth straight meeting on Thursday, but signalled it could cut interest rates as early as August given recent inflation and economic growth numbers.

Remolona said he would like to reduce reserve requirements for banks "by quite a bit", but it would not necessarily be in tandem with a rate cut. He said the BSP could reduce the requirement to 5% from 9.5%, one of the highest in the region.

"The timing is important. We don't want to do it while we're still hawkish," Remolona said.

Remolona added the country's ongoing maritime tensions with China in the South China Sea has not affected the peso.

Annual inflation quickened for a third straight month in April to 3.8%, bringing the average to 3.4% in the first four months, within the central bank's 2% to 4% target for 2024.

(Reporting by Mikhail Flores and Karen Lema; Editing by John Mair)

Follow us on our official WhatsApp channel for breaking news alerts and key updates!
Philippine , Peso , Central Bank , Pressure , Measures

Next In Aseanplus News

Legality of Prabowo’s budget cuts in doubt
Unprecedented US visit by all 13 Canadian premiers paints China as ‘common economic enemy’
Soccer-No booze in 2034 World Cup, LGBTQ fans welcome, Saudi ambassador says
Chhattisgarh High Court acquits husband in unnatural sex case, asserts adult married women cannot allege rape or unnatural acts
Honda, Nissan terminate merger talks
'It's all about life' as local hip-hop-reggae stars Luca Sikta, Kmy Kmo and Salammusik goes high tempo with 'Ke Mana Ni' under Sony Music
Korean woman punished for biting off tongue of attempted rapist to get retrial 60 years later
Marriage registration, festivities to launch in Bangkok for Valentine’s Day
Hong Kong minibus king’s family to sell The Center assets at 34% discount from 2018 price
Japan man starts dating agency after 2,000 failed blind dates due to low income, living at home

Others Also Read