BSP: No need for additional rate cuts amid coronavirus

BSP Governor Benjamin Diokno says a 50-basis-point reduction in key policy rates is sufficient for now despite the impact of the coronavirus outbreak.

Diokno cited an assessment that the virus would have limited impact on this year’s domestic expansion, estimating it at around 0.3 percent.

The BSP cut its key rates by 25 basis points last February 6, with inflation forecast to remain within target and domestic growth remaining firm.

While Diokno sees no immediate need for another rate cut, he hinted that the Monetary Board might consider a further reduction of 25 basis points in the second quarter if the outbreak worsens.