Manila Bulletin
Recent BSP rate cut enough to cushion COVID-19 impact
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.
However, he reiterated that the BSP still plans to reduce benchmark rates by a total of 50 basis points this year.
The COVID-19 outbreak remains a downside risk to the country's economy, particularly affecting the tourism and exports sectors.
Regional trade and manufacturing could also decline due to potential breaks in global supply chains.
Diokno expects weakening in consumption demand due to uncertainty that could dampen investment and consumption.
The BSP will continue to be vigilant and assess the potential impact on the inflation outlook and the entire economy.
The central bank stands prepared to calibrate its monetary instruments and implement regulatory relief as needed.
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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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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.
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S&P Global has lowered its 2020 growth forecast for the Philippines to 6.1% from 6.2% due to the anticipated impact of the coronavirus disease 2019 (Covid-19).
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The International Monetary Fund (IMF) projects the Philippine economy to grow around 6.3% in 2020, with first-quarter growth expected to be close to this figure.
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Moody's Investors Service has lowered its 2020 economic growth forecast for the Philippines to 6.1 percent from 6.2 percent due to the COVID-19 outbreak, citing spillovers from slower growth in the region, primarily the impact from China.
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