Central Bank’s Monetary Policy Development Council is likely to cut the key overnight lending rate by 4% as early as February..
Overnight loan – loan that is provided at the end of the working day and is repayable at the beginning of the next working day; such loans are often used on the interbank market or when making settlements between banks and brokers to complete settlements at the end of the day.
This step will help to revive the economic situation in the country. Lowering the key rate will encourage borrowers to take out loans, which, in turn, can stimulate more economic activity.
“The authorities were ready to further lower interest rates, if this is confirmed by data, such as the latest growth figures released on Thursday by the government,” said BSP pigeon governor Benjamin Diokno.