BSP to likely ‘do something’ during Thursday’s policy meeting —Pernia

The Bangko Sentral ng Pilipinas (BSP) is likely to “do something” during its policy meeting Thursday afternoon, said Socioeconomic Planning Secretary Ernesto Pernia.

“I’m sure they will do something because Governor Ben Diokno texted me and he wanted already to know what the numbers are,” Pernia told reporters in a press conference in Pasig City.

The gross domestic product expanded by 5.5% in the second quarter, the slowest in four years since settling at 5.1% in the first quarter of 2015.

The GDP results and the 31-month low inflation at 2.4% in July are to take center stage during the BSP’s policy meeting.

“I think Ben Diokno is a pro-growth central bank governor and he will take the cue in terms of how to stimulate the economy with monetary policy,” said Pernia.

“I’m quite optimistic that he will do the right thing,” he said.

Market watchers expect the BSP to cut policy rates on Thursday, but are divided on how much the cut would be.

A cut in interest rates must precede a cut in the reserve requirement ratio, currently at 16%, Diokno said in July. —VDS, GMA News