MANILA ⸺ The Philippines’ central bank will continue supporting the economy, which remains fundamentally sound despite the ongoing pandemic, its governor said on Monday.
The impact of the COVID-19 crisis on the economy will be transitory, central bank governor Benjamin Diokno told an economic forum.
The Philippine economy contracted a record 9.6% in 2020 because of lengthy and restrictive coronavirus curbs.
Diokno said further cuts in the banks’ reserve requirement ratio (RRR) remain on the table, but that will depend on domestic liquidity and credit dynamics in coming months.
The central bank governor aims to reduce the RRR to the single digit level by the end of his term in 2023 from the current 12%.
The central bank, which kept interest rates steady at 2.0% at its last meeting in March, will meet on May 13 to review policy.
Reporting by Neil Jerome Morales; Editing by Ed Davies; Reuters