ING Bank analyst on Friday said that a 2019 novel coronavirus posed a drag on the global economy, giving central banks — including the Philippines — room to cut interest rates.
This, as the world commodity prices will remain “depressed” because of weak demand from China, according to ING Bank analyst Nicholas Antonio Mapa. He also said that investors, who were looking for higher yields, were unlikely to leave the Philippines.
Bangko Sentral ng Pilipinas Governor Benjamin Diokno on Thursday fired the first half of his planned 50-basis point cut in the overnight borrowing rate. He said that the first half of economic growth could be reduced by 0.3 point due to the 2019 novel coronavirus.
ING Bank analyst Nicholas Antonio Mapa also said that Bangko Sentral ng Pilipinas Governor Benjamin Diokno was “very clear where he wants to be” as “transparency and good communications from the BSP will go a long way in maintaining financial market calm.”
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