Diokno : Timing is crucial for next rate cut

Benjamin Diokno

MANILA — Philippine monetary officials have already made up their mind to further cut Bangko Sentral ng Pilipinas’ (BSP) key policy rates.However BSP Governor Benjamin Diokno said they are still waiting for the right time to go ahead with it.

This will be BSP’s policy making Monetary Board (MB) fifth rate-setting meet for the year on August 8.

This coming July 30 to 31, 2019, the Federal Open Market Committee will have another meeting, and rate cut expectations have risen following Federal Chair Jerome Powell’s statement in US Congress about the need to slash key rates to support the growth of the world’s largest economy. This he said, is being affected by global trade concerns.

The Fed’s decision, along with the report on the July 2019 inflation rate of which Philippine Statistics Authority is scheduled to release on August 5, and the GDP report for the second quarter will be the major factors influencing their next policy action.

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