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Stocks up nearly 5% on news of an interest rate cut
Philippine shares rebounded on Friday, April 17, 2020, with the PSEi gaining 4.78% to close at 5,789.97.
The Bangko Sentral ng Pilipinas (BSP) announced a 50-basis point reduction in key policy rates to stimulate the economy amidst the COVID-19 crisis.
This rate cut brings the overnight reverse repurchase rate to 2.75%, the overnight deposit facility to 2.25%, and the overnight lending facility to 3.25%.
The BSP's decision aimed to encourage lending to different sectors, particularly those most vulnerable during this time.
The market shrugged off the 6.8% year-on-year fall of China's first quarter gross domestic product.
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The Bangko Sentral ng Pilipinas (BSP) implemented an off-cycle policy rate reduction of 50 basis points, bringing the key policy rate down to 2.75 percent, effective April 17, 2020.
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The Philippine peso depreciated against the US dollar, closing at P50.9:$1 on Friday, April 17, 2020, down 1 centavo from Thursday's close.
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Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno indicated readiness to lower the key policy rate below 3% to mitigate the economic impact of the "once in a lifetime crisis."
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Philippine shares continued their rally on Wednesday, with the PSEi increasing by 165.17 points, or 2.86%, to close at 5,946.05.
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The Philippine Stock Exchange index (PSEi) dropped by 7.07% on Thursday, ending a three-day winning streak due to profit-taking and concerns over the economic impact of COVID-19.
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