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BSP slashes policy rates by another 50 basis points

The Bangko Sentral ng Pilipinas (BSP) on Thursday announced another round of key rate cuts, a decision made off-cycle from the regular policy meetings conducted every six weeks.

In a message to reporters, BSP Governor Benjamin Diokno said key policy rates will be slashed by 50 basis points effective Friday, April 17, 2020.

This will bring the overnight reverse repurchase rate to 2.75%, the overnight deposit facility to 2.25%, and the overnight lending facility to 3.25%.

No announcement was made regarding the reserve requirement ratio (RRR).

The Monetary Board was scheduled to revisit key policy rates on May 19, 2020, which has since been canceled.

The BSP last month already slashed policy rates by 50 basis points, providing economic stimulus given the coronavirus disease 2019 (COVID-19) health crisis.

It also reduced the reserve requirement for all universal and commercial banks by 200 basis points starting March 30. — RSJ, GMA News