Given these favorable inflation assessments, the Monetary Board (MB), during its last monetary policy meeting, decided to reduce its policy rate by 25 basis points (bps) to 4.50 percent, effective May 10, 2019. The MB’s decision is based on its assessment that the inflation outlook continues to be manageable, with easing price pressures owing to the decline in food prices amid improved supply conditions.
In addition, the BSP also recently pre-announced the schedule of reserve requirement reduction for universal commercial banks: 100 bps by May 31 and 50-bps each on June 28 and July 26, 2019.