Recto says PHL on track for rate cut

MANILA — Philippine Finance Secretary Ralph G. Recto said on Tuesday the country is on track for a cut in policy rates this year due to easing inflation, though the timing would be up to the central bank.

Mr. Recto, who is also a member of the Bangko Sentral ng Pilipinas’ Monetary Board, said he hoped second-quarter growth in gross domestic product would be at 6%, driven by household consumption and government spending.

The central bank, which has kept interest rates steady at 6.5% in its last six meetings, has previously flagged a possible cut of 25 basis points at its Aug. 15 meeting as it sees inflation easing in the second half when a rice import duty is slashed to 15% from 35%.

The government has set a 6% to 7% growth target for 2024. — Reuters