Bloomberg News

Philippines May Cut Reserve Ratio on Rules Change, Tetangco Says

December 20, 2011

Dec. 21 (Bloomberg) -- The Philippine central bank may cut banks’ reserve requirement ratio, currently at 21 percent of deposits, to achieve a “neutral effect” on possible changes in rules, Governor Amando Tetangco told a group of foreign media.

The monetary authority may stop paying interest rates on banks’ reserves as it seeks to simplify the rules and improve the effectiveness of the policy tool, Tetangco said today in Manila. The Philippine government has space to bolster spending as it gets closer to achieving higher credit rating, he said.

--With assistance from Cecilia Yap in Manila.

To contact the reporter on this story: Max Estayo in Manila at mestayo@bloomberg.net

To contact the editor responsible for this story: Clarissa Batino at cbatino@bloomberg.net


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