Interest rate cut seen to help 'jumpstart' growth: economist

ABS-CBN News

Posted at Aug 12 2019 10:30 AM

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MANILA – The Bangko Sentral ng Pilipinas' interest rate cut last week can help "jumpstart" economic growth, an economist said Monday, adding financial markets were awaiting further loosening in monetary policy.

Investors are expecting a 100-basis point cut in the reserve ratio requirement for banks after the BSP cut the benchmark lending rate by 25 basis points, said Security Bank chief economist Robert Dan Roces.

“The delayed spending crept into the second quarter… The hope of the 25 basis point cut is to jumpstart at least some of the support systems for the infrastructure program,” Security Bank chief economist Robert Dan Roces told ANC. 

The BSP cut lending rates after second quarter gross domestic product growth came in at the lowest in 4 years.