Philippine Monetary Policy Good for Support Growth and Inflation Mgt

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by Prinz Magtulis, Philippine Star - The current state of monetary policy remains appropriate to support growth and manage inflation, a central bank official said over the weekend.

“Monetary policy remains appropriate as it is. We have not seen any tightness in the monetary condition and trading continues to grow. It has not been an impediment to financing economic activity,” Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa Guinigundo said during the BSP’s annual media seminar held here.

The Monetary Board (MB), BSP’s policy making body, has cut twice its key rates down to their record-lows this year, putting overnight borrowing rate at four percent and overnight lending rate, six percent. It has also lowered the amount banks must keep as reserve to 19 percent from 21 percent.