Philippine News Agency
Planned 50 bps cut in BSP rates this ’20 enough for now: Diokno
Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno stated that a 50-basis-point reduction in key policy rates for the year is enough to mitigate the economic impact of the COVID-19 outbreak.
The BSP has already implemented a 25 basis point cut on February 6, and the next reduction will occur either in the second quarter or the second half of the year.
Diokno cited the limited projected impact of the virus on the country's domestic expansion, estimated at an average of 0.3 percent.
This assessment is supported by forecasts of inflation remaining within the target band and firm domestic growth, which rose to 6.4 percent in the last quarter of 2019.
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Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno stated that the recent 25-basis point interest rate cut on February 6 is currently enough to cushion the effects of the novel coronavirus outbreak on domestic demand.
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J.P. Morgan expects the Monetary Board to reduce benchmark interest rates by 25 basis points next quarter to stimulate the economy in response to the novel coronavirus outbreak.
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