The Philippine central bank will consider reducing banks’ reserve requirement ratio once government spending picks up and economic growth accelerates, deputy Governor Diwa Guinigundo said in an interview.
“If infrastructure spending goes up, we will lower the reserve requirement” currently at 21 percent, Guinigundo said in Manila today. Bangko Sentral ng Pilipinas, which will hold its final rate-setting meeting on December 1, will consider developments in Europe and in the US, the official told a forum. The Philippines will continue to build up international reserves “as buffer against external shocks,” he said. The monetary authority is working to “streamline” the process of registering foreign-exchange in its bid to facilitate flows, Guinigundo said. -By Norman P. Aquino