BSP slashes policy rate to record low

BSP Governor Benjamin Diokno cut key interest rates by another 50 basis points on Thursday to a record low of 2.75%, in response to the economic impact of the COVID-19 pandemic.

The reduction aims to encourage lending and support vulnerable sectors, with economists like Capital Economics predicting further rate cuts to as low as 2% this year.

BDO Unibank chief strategist Jonathan Ravelas expects additional cuts in key rates and banks' reserve requirement ratio (RRR) later this year to cushion the economic impact of the pandemic.