BSP: No plans yet for more macro-prudential measures

Posted at 05/19/14 6:41 PM

MANILA - The Philippine central bank is not planning to impose more macro-prudential measures after it raised banks' reserve requirements by a total of two percentage points at its last two policy meetings, its governor said on Monday.

Amando Tetangco also said monetary authorities preferred "early measured actions" to address emerging external and domestic risks. He added the central bank will soon conduct stress tests for banks to better gauge their exposure to the growing real estate market.

"We will have to continue to monitor the situation. At this point in time, there are no plans. But we'll see," Tetangco said when asked by reporters if there were plans to deploy more policy measures.

The central bank kept its benchmark rate steady at a record low of 3.5 percent at its May 8 meeting but raised banks' reserve requirements for the second straight meeting on concerns that persistently high liquidity could stoke inflation.