ANZ sees additional BSP easing to address pandemic

ANZ Research forecasts additional monetary easing from the Bangko Sentral ng Pilipinas (BSP) to address the economic impact of the coronavirus pandemic.

The research firm projects Philippine economic growth this year at 1.2%, significantly lower than last year's 5.9% and the government’s target range of 6.5-7.5%.

ANZ believes that monetary policy will be widened to include credit guarantees on lending to impacted sectors and greater regulatory forbearance.

UnionBank’s economic research unit also calls for more targeted policy support, noting that the current situation is worse than during the 2008 global financial crisis due to the impact of the pandemic on trade and tourism.