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BSP seen cutting rates by 25 bps after March
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.
The bank believes the outbreak could further magnify downside risks to economic growth, impacting the lackluster capital expenditure outlook for this year.
Amid growth concerns and a well-behaved inflation trajectory, J.P. Morgan anticipates a further 25 basis point policy easing in the second quarter of 2020.
BSP Governor Benjamin Diokno previously signaled another possible cut by midyear.
The Monetary Board recently cut benchmark interest rates by 25 bps, bringing the reverse repurchase rate to 3.75%.
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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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The Bangko Sentral ng Pilipinas (BSP) has cut its benchmark interest rate by 25 basis points to 3.75 percent, with the overnight lending and deposit facilities adjusted to 4.25 percent and 3.25 percent, respectively.
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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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