BSP ready to use tools to cushion economic impact of COVID-19

The Bangko Sentral ng Pilipinas (BSP) is prepared to implement additional measures to support the government's response to the coronavirus pandemic.

Inflation is expected to remain low due to disruptions in industries and private spending caused by quarantine measures.

The BSP has already reduced policy rates by 75 basis points and reserve requirement ratios for banks by 200 basis points, providing economic stimulus.

The central bank also eased know-your-customer rules to facilitate access to government financial aid programs for those affected by the pandemic.

BSP Governor Benjamin Diokno emphasized that the Philippines has sufficient monetary and fiscal resources to mitigate any negative impacts of the pandemic on the economy.