• A day after signaling the central bank’s readiness to pivot to monetary easing, Philippine central bank Governor Eli Remolona said he would like to see easier liquidity conditions as policy may be becoming tighter than necessary.
• “We’re beginning to see a negative output gap. That means it’s possible that we’re beginning to be tighter than necessary for taming inflation,” Remolona said in an interview with Bloomberg Television’s Yvonne Man and Stephen Engle on Friday.
• The governor doubled down on his dovish tilt from Thursday when he said that the Bangko Sentral ng Pilipinas may cut its key rate by as much as a half-point this year in an easing cycle that may start as early as August. On Friday, he spoke about reducing banks’ reserve requirement ratio by 450 basis points during his six-year term, seemingly unfazed by the impact on the currency from the shift in his broadly hawkish tone since taking office in July 2023.