Proper timing urged for reserve ratio cut

The International Monetary Fund (IMF) on Friday expressed support for lower bank reserve requirements but reiterated calls for caution given possible adverse effects.

“We believe that [the] Bangko Sentral ng Pilipinas (BSP)’s high reserve requirement ratio should be reduced over time but this needs to be carefully calibrated to ensure an unchanged monetary policy stance,” IMF Resident Representative Yongzheng Yang said in a press briefing.