BSP Seen Raising Bank Reserves Anew
The central bank is expected to do more of the same at the Monetary Board’s policy meeting this week as officials’ eyes remain fixed on mopping up excess cash from the system to quell the threat this poses to price stability. Five banks polled by the Inquirer were unanimous in saying the Bangko Sentral ng Pilipinas (BSP) would likely ask banks to set aside more of their deposits as reserves, keeping this cash from entering the economy and fueling excess demand that, in turn, causes inflation to spike.
Source: Philippine Daily Inquirer