Philippine monetary authorities will cut the central bank’s interest rates by at least 25 basis points (bps) when they meet on Thursday to support economic growth amid the spread of the coronavirus disease 2019 (Covid 19) outbreak, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno confirmed on Monday. The MB (Monetary Board) might consider a higher cut given the synchronized global monetary easing, sharp fall in oil prices, worsening Covid-19 breakout,” he told The Manila Times in a text message. Diokno’s latest statement confirmed analysts’ forecast that the BSP policy-making Monetary Board will reduce the central bank’s overnight borrowing, lending and deposit rates — currently at 3.75 percent, 4.25 percent and 3.25 percent, respectively — at their second rate-setting meeting this year. This is amid easing interest rates globally with the latest reduction coming from the United States Federal Reserve, which delivered a full percentage point cut, setting the benchmark rate now at 0.25 percent. “The other factor that we shall have to take into account is the serious spread of the Covid-19,” Diokno continued.

Source: Manila Times March 16, 2020 17:37 UTC