Inquirer
Monetary easing seen as BSP warns of COVID-19 impact
The Bangko Sentral ng Pilipinas (BSP) is prepared to implement measures, including further interest rate cuts, to safeguard the Philippine economy if the COVID-19 outbreak persists and negatively impacts growth.
BSP Governor Benjamin Diokno stated that the central bank has the flexibility to lower interest rates further, citing the successful control of inflation.
The Monetary Board acknowledged the potential negative effects of the coronavirus on global market sentiment and domestic economic activity.
Market watchers expect the central bank to ease monetary policy further later this month, as the effects of the virus outbreak are increasingly seen to be worse than initially expected.
A reserve requirement ratio reduction is also a possibility in the coming days, given the improvement in bank lending.
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