BSP may cut rates by 25bps in Q2

J.P. Morgan expects the BSP to cut benchmark interest rates by 25 basis points next quarter in response to the novel coronavirus outbreak.

The outbreak is seen as intensifying downside risks to GDP growth, particularly due to potential economic impacts and a lackluster capex outlook.

Analysts from Fitch Solutions Macro Research also predict another 25 bps cut to shield the economy from natural disasters and the virus's impact on external demand and domestic confidence.