Friday, September 25, 2020

RRR Cuts To Support PH 6% Growth, Peso: Economist

RRR Cuts To Support PH 6% Growth, Peso: Economist


7 Commandments To Revitalize The Country Safely

Medical experts recommend strict health protocols for public transportation.

Alibaba Cloud Launches New Digital Ecosystem Strategy In The Philippines

This will help local businesses adapt further to the new normal!

EDC Donates PCR Machines To Enhance Negros Oriental’s COVID-19 Resiliency

Energy Development Corporation donates equipment worth P8.5-million to Negros Oriental.

CeMAP, PISI Express Full Support For Bayanihan To Recover As One Act

The Cement Manufacturers Association of the Philippines and Philippine Iron and Steel Institute announce full support to the recently signed Bayanihan to Recover as One Act.

An economist of a local bank expects better results for the Philippine economy and the Peso this 2019 following the series of cuts in banks’ reserve requirement ratio (RRR).

Rizal Commercial Banking Corporation (RCBC) lead economist Michael Ricafort, in a reply to an e-mail from the Philippine News Agency (PNA), said a 1 percentage point reduction in RRR is projected to bring in additional PHP110 billion into the banking system.

“This will further spur greater loan growth and more economic activities and faster GDP growth,” he said.

“Recent sharp growth in government spending especially on infrastructure, together with RRR cuts and policy rate cuts would further raise the odds of GDP growth of at least 6 percent for 2019,” he said.

To date, Bangko Sentral ng Pilipinas’ (BSP) policy-making Monetary Board (MB) slashed by 400 basis points (bps) the RRR of universal and commercial banks (U/KBs) and thrift banks (TBs) while it is 300 bps for non-bank financial institutions with quasi-banking functions (NBQBs), 200 bps for rural banks (RBs), and 100 bps for cooperative banks (coop banks).

The initial reductions were implemented last May to July while some will take effect in the first week of November and the first week of December.

By the end of this year, the RRR level of U/KBs will be 14 percent, RBs, 3 percent; TBs, 2 percent; and NBQBs, 14 percent.

These reductions were made to make Philippine banks’ RRR level at par with their counterparts in the region.

Ricafort said these cuts are expected to further lift bank lending, proceeds of which are expected to further spur economic growth.

BSP data showed that as of last August, outstanding loans of U/KBs, excluding funds placed in the central bank’s reverse repurchase (RRP) facility, grew by 10.5 percent, slower than the 11.1 percent in the previous month.

The bulk of the loans, or about 87.4 percent of the total, was extended for production activities in real estate, financial and insurance sector, and construction, among others.

The growth, as measured by gross domestic product (GDP), averaged at 5.5 percent in the first six months this year, lower than the government’s full-year target of between 6 percent and 7 percent.

Authorities traced the below-target output to the impact of the delay in the approval of this year’s national budget.

They are, however, optimistic for a recovery in the second half of the year and the achievement of the growth target due largely to the catch-up spending program, particularly for the infrastructure program. (PNA)

Latest News

7 Helpful Apps For Your Online Classes

Make your online classes easier to deal with with these apps!

PLDT Assures Stable Internet Connection During Maintenance Works

PLDT assures its users that their connection would be stable during its emergency maintenance works.

Taguig Inaugurates COVID-19 ‘Mega-Complex’ Facility

Taguig City inaugurates its COVID-19 mega-complex facility which will host the new city-run Molecular Laboratory, the Lakeshore Mega-quarantine facility, and the Lakeshore National Testing Facility.

Palace Believes AFP Not Involved In Fake FB Accounts

Malacañang believes that none of the fake accounts taken down by Facebook are accounts managed by the Armed Forces of the Philippines.

CA Junks Suit Filed By Customs Exec Accused Of Corruption

The Court of Appeals dismisses for lack of merit a petition filed by Bureau of Customs official Teodoro Jumamil questioning his suspension by the Office of the Ombudsman.

PH Displays ‘Int’l Leadership’ For Call To Address Climate Change

The Institute for Climate and Sustainable Cities, an international climate and energy policy group based in the Philippines, lauds the Philippine government for its display of "international leadership" at the 75th United Nations General Assembly.

Mobile Legends: Unveils New Trailer, New Hero Updates and Improved Gaming Experience

Expect a more immersive experience with the new era of Mobile Legends: Bang Bang!

San Juan Aids Hearing-Impaired Man Return Home

A locally stranded person with disability receive assistance from San Juan City.

Group: Bulacan Airport Biggest ‘Ray Of Hope’ For Migrant Workers

Groups of migrant workers laud the plan of San Miguel Corporation to construct an international airport in Bulacan saying it as a potential source of employment and livelihood opportunities for displaced local and overseas workers displaced.