BSP may speed up rate cuts if coronavirus impacts economy

The Bangko Sentral ng Pilipinas (BSP) may accelerate its rate cut program for 2020 if the novel coronavirus has a larger negative impact on economic growth than currently expected.

Governor Benjamin Diokno stated that the Monetary Board might implement the second promised 25-basis point rate cut as early as the second quarter of 2020, though current forecasts predict only limited effects on GDP.

Diokno noted at a press briefing that the virus poses a downside risk to economic growth in 2020 and could disrupt tourism and related services.