BSP injects P2T into financial system amid pandemic

Over P2 trillion was infused into the Philippine financial system from accommodative policies and liquidity easing measures by the Bangko Sentral ng Pilipinas (BSP) as of June 3.

The central bank's governor, Benjamin Diokno, stated that monetary policy has focused on supporting economic activity and market confidence amid heightened uncertainty due to the COVID-19 pandemic.

Diokno added that the BSP decided to mobilize its monetary instruments and other extraordinary measures to prevent liquidity strains and long-lasting damage in the domestic economy.

Despite growing talk about interest rate hikes in developed economies, the BSP intends to keep domestic rates low to support economic recovery from the pandemic.