MANILA, June 29 (Reuters) - The Philippine central bank said a cut in the banks’ reserve requirement ratio (RRR) is still on the table even after it has already slashed the benchmark rate four times this year.
“On the infusion of additional liquidity, we stand ready to use the full range of monetary tools to implement policy actions as needed,” central bank Governor Benjamin Diokno told ANC news channel. The central bank still has authority to reduce the RRR by a further 200 basis points this year.
Diokno also said price stability was the least of the concerns of the central bank, with inflation seen averaging 2.3% this year and 2.6% in 2021, both at the low-end of the 2-4% target. It gave leeway for the central bank to cut rates by 50 basis points last week. (Reporting by Neil Jerome Morales Editing by Ed Davies)