BSP may cut policy rate by 50 basis points this week

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno indicated that the Monetary Board might consider a policy rate cut of 50 basis points this week.

This potential move is an additional measure to help contain the economic impact of the coronavirus disease 2019 (Covid-19), following synchronized global monetary easing and a sharp fall in oil prices.

The Monetary Board's second rate-setting meeting is scheduled for Thursday, March 19, where a deeper cut is now being considered.

If a 50-basis point cut occurs, it would be the second for the year, following a 25-basis point reduction in February.

Diokno had previously committed to a total of 50-basis point rate reductions this year, but the new article suggests this could be implemented in one go.

Central banks worldwide, including the US Federal Reserve, have announced aggressive measures to address the economic impact of the pandemic.