00:00The Banko Sentral ng Pilipinas is hinting on a move that would grant relief to both banks and borrowers,
00:05another interest rate cut of a quarter of a percentage point.
00:09Then again, this win-win move for lenders and borrowers will undergo a thorough study by the Central Banks Monetary Board
00:16before it comes into fruition, as our Noel Talacay reports.
00:22The Banko Sentral ng Pilipinas is considering a move that could bring relief to banks and borrowers alike
00:29In the recently held 2024 Systemic Risk Dialogue, BSP Governor Eli Ramo Llona Jr. revealed the possibility of reducing
00:39monetary policy rates or interest rates by 25 basis points next month.
00:44It's possible, December meeting. We're still in the easing cycle. Either we cut in December or cut in the next meeting. But slowly, slowly.
00:58Currently, the interest rate for banks borrowing from the BSP stands at 6%.
01:04If the proposed cut is approved in December, it will drop to 5.75%.
01:11This reduction could lead to lower interest rates offered by banks for various loans to pull in more clients.
01:18However, Governor Ramo Llona emphasized the Monetary Board will thoroughly study the decision in the coming weeks.
01:26We expect the November inflation number. Let's see what that is.
01:33Our expectation is still in the target band.
01:38This year, the BSP has already implemented two 25-basis-point cuts in August and October.
01:46Whether December will see another reduction in interest rates remains to be seen, but it could signal continued strengthening of the country's monetary policy.
01:56Meanwhile, the 2024 Systemic Risk Dialogue concludes today in Maktan, Cebu.
02:02According to the BSP, next year's event or proceedings will be held in Indonesia.
02:08Lower interest rates could have a ripple effect on borrowers' costs.
02:12We'll keep you updated as the Monetary Board's decision approaches.
02:16Noel Palacay from the National TV Network for you in Qatar, Philippines.
