BSP Governor Benjamin E. Diokno said he and the Monetary Board still has three and a half years to bring the RRR to single-digit levels. But when asked if the BSP will mirror this year’s 400 basis points RRR cut for 2020, he said that is not a possibility.
He said that as the economy expands and grows further, with the completion of the infrastructure projects which will link provinces, the demand for more housing, residential developments and new communities will also grow, and so is the required funding for these expansion. IMF Mission Chief Thomas Helbling said that RRR is no longer considered a significant monetary tool and agreed with the BSP that it is more of an operational adjustment.
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