Philippines Macroeconomist/Strategist

Jun Trinidad

Macroeconomics

Philippines Stock Exchange PSEi Index (PCOMP INDEX)

For the 2ndtime this year, the Bangko Sentral ng Pilipinas (BSP) slashed the bank reserve requirement ratio by another 1% to 18% (effective June) and unleashed roughly Php90bn into the system. Clearly this move uplifts growth prospects as banks would have additional loanable funds to support upbeat loan demand.Reserve cut as bank liquidity has normalized. Good time to trim the bank reserve ratio not just from a policy perspective.  Since 2017, excess bank liquidity had been deployed either…

 For the 2ndtime this year, the Bangko Sentral ng Pilipinas (BSP) slashed the bank reserve requirement ratio by another 1% to 18% (effective June) and unleashed roughly Php90bn into the system. Clearly this move uplifts growth prospects as banks would have additional loanable funds to support upbeat loan demand.Reserve cut as bank liquidity has normalized. Good time to trim the bank reserve ratio not just from a policy perspective.  Since 2017, excess bank liquidity had been deployed either…

When the Liquidity Lift from a Bank Reserve Cut Is Not Inflationary