“We had originally pencilled in a 25-bp rate cut for the central bank’s meeting on 19th March. A 50 bp (rate cut) is now more likely,” he added. “We have penciled in a 25-bp cut in the benchmark RRP (reverse repurchase) rate at the March 19 Monetary Board meeting,” the JP Morgan economist said. On the other hand, Standard Chartered Bank analysts emphasized the lower-than-expected 2.6-percent inflation rate in February provides space for the BSP to ease policy rates this month. “Global monetary easing following the risk of a more widespread coronavirus outbreak than earlier expected, combined with the likely negative hit to Philippines’ growth outlook, is likely to prompt more aggressive monetary policy from BSP,” it said.

Source: Manila Times March 15, 2020 16:18 UTC