For the record, Moody’s Analytics and Moody’s Investors Service operate under the same large umbrella of the Moody’s Corporation, but are otherwise independent; the Investors Service is one of the “big three” credit ratings agencies, while Moody’s Analytics focuses on “financial intelligence,” macroeconomic and sector research and analysis. However, the BSP kept its benchmark interest rate unchanged at 2.0 percent; the Moody’s Analytics report actually coincided with last Thursday’s BSP Monetary Board meeting, as that decision or lack thereof would have some bearing on the overall forecast. Those fears were of course realized this week with a return to near-lockdown conditions in Metro Manila and the four neighboring provinces. Moody’s Analytics also suggested, at least indirectly, that the mishandling of the vaccination effort is also responsible for weak demand. Since the Philippines is not at that point yet, its recovery has not actually started.

Source: Manila Times March 29, 2021 16:23 UTC