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

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


GSIS To Launch Two Mobile Apps This October

Mas madali mo nang ma-access ang iyong GSIS account gamit ang bagong mobile application nito!

Halloween @ Home: Recreate The Chills And Thrills With Globe At Home

End the Spooktober in a spooktacular way with Globe At Home!

Phoenix Introduces New FamilyMart Retail Format Through Cebu Stores

FamilyMart opens three new compact stores in Cebu, offering a unique customer experience in response to the effects of the COVID-19 pandemic.

Globe Introduces Mobile Health Solution With GoHealth

For just P20, you can now enjoy up to P,1000 health insurance from Pacific Cross!

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)

Gatchalian Flags DOF: Look For Addt’l Funds For Murang Kuryente Act, Spare Taxpayers

Senator Win Gatchalian has put to task the Department of Finance in providing for sufficient budget and in sparing the taxpayers from being choked by new borrowings to fund next year's obligations of the Murang Kuryente Act.

Bacolodnons Mark MassKara Festival With Virtual Events

Here's how the iconic MassKara Festival went this year:

Tarlac City Residents Asked To Observe ‘Undas’ Guidelines

Tarlac City reminds residents to strictly comply with guidelines governing the observance of the All Saints’ Day or Undas.

DOLE: ‘Floating’ Employees Allowed To Find Alternative Work

DOLE, pinahintulutang maghanap ng alternatibong pagkakakitaan ang mga empleyadong nasa "floating status."

Velasco Urges Senate To Pass Disaster Resilience Dep’t Bill

Speaker Lord Allan Velasco calls on the Senate to prioritize the passage of a bill creating the Department of Disaster Resilience as Typhoon Quinta battered different parts of Luzon.

Pancake House Introduces A New Way To Enjoy Fried Chicken

Yum! The latest offering of Pancake House is a must-have for the holidays!

Gov’t Allows Motorcycle Taxi Pilot Study To Resume

Angkas at Joyride, pwede na ulit!

DSWD Mindanao To Improve Storage Of Relief Goods

The Department of Social Welfare and Development has reported that some of its regional offices in Mindanao received food preservation machines to be used in storing relief goods for a longer period.

WHO: World Had Highest Tally Of COVID-19 Cases Last Week

Last week saw the highest number of COVID-19 cases reported so far, and 46 percent of all the global cases were from the European region accounting for nearly one-third of all deaths, the two top World Health Organization officials said.

DOH To LGUs: Screen Evacuees For COVID-19 Symptoms

The Department of Health has advised LGUs to always check evacuees for COVID-19 symptoms and to isolate those with symptoms from the evacuation sites.