FOREX TradingCharts.com

Financial News: Philippine CB Reduces Key Rates Unexpectedly

Philippine CB Reduces Key Rates Unexpectedly

11/19/2020 - 04:42:00 (RTTNews)

(RTTNews) - The Philippine central bank lowered its key rates unexpectedly by 25 basis points to support economic recovery amid increased downside risks to growth.

The Monetary Board of the Bangko Sentral ng Pilipinas, or BSP, on Thursday, decided to reduce the overnight reverse repurchase facility rate to 2.00 percent from 2.25 percent. The new rate will take effect on November 20.

The bank was expected to leave its key rates unchanged. The bank had reduced its key rate by 50 basis points each in June, April and March and by 25 basis points in February.

The interest rates on the overnight deposit and lending facilities were also lowered 1.50 percent and 2.50 percent, respectively.

The central bank is likely to pause at its rate at the December meeting, now that real policy rates have fallen even deeper into negative territory with the central bank likely calling for a renewed push for additional fiscal spending to address the freefall in economic activity as Covid-19 infections remain elevated in the country, Nicholas Mapa, an ING economist said.

Uncertainty remains elevated amid the resurgence of Covid-19 cases globally, the central bank said. However, global economic prospects moderated in recent weeks.

The board noted that muted business and household sentiment and the impact of recent natural calamities could pose strong headwinds to the economic recovery in the coming months.

The board assessed that there remains a critical need for continuing policy support measures to bolster economic activity and boost market confidence.

With a benign inflation environment and stable inflation expectations, the board viewed that there is enough policy space for a reduction in the policy rate at this time to uplift market sentiment and nurture the country's economic recovery amid increased downside risks to growth.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2020 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


U.S. Factory Orders Jump More Than Expected In October (06 hr(s), 09 min(s), 35 sec(s) ago)
(RTTNews) - Data released by the Commerce Department on Friday showed new orders for U.S. manufact ...Full Story»

U.S. Trade Deficit Widens As Imports Rise More Than Exports (06 hr(s), 30 min(s), 35 sec(s) ago)
(RTTNews) - With the value of imports rising by more than the value of exports, the Commerce Depar ...Full Story»

U.S. Employment Rises Much Less Than Expected Amid Surge In Coronavirus Cases (07 hr(s), 03 min(s), 35 sec(s) ago)
(RTTNews) - Reflecting renewed restrictions amid the recent surge in new coronavirus cases, the La ...Full Story»

U.S. Trade Deficit Widens In October (07 hr(s), 58 min(s), 35 sec(s) ago)
(RTTNews) - With the value of imports rising by more than the value of exports, the Commerce Depar ...Full Story»

U.S. Employment Rises Much Less Than Expected In November (08 hr(s), 04 min(s), 35 sec(s) ago)
(RTTNews) - A closely watched report released by the Labor Department on Friday showed U.S. job gr ...Full Story»

Ireland Exits Recession In Q3 (09 hr(s), 19 min(s), 35 sec(s) ago)
(RTTNews) - Ireland's economy recovered from a technical recession in the third quarter, the C ...Full Story»

Greece Economy Recovers In Q3 (09 hr(s), 52 min(s), 35 sec(s) ago)
(RTTNews) - Greece's economy recovered in the third quarter from a record contraction caused b ...Full Story»

German Factory Order Growth Tops Expectations (10 hr(s), 07 min(s), 35 sec(s) ago)
(RTTNews) - Germany's factory orders growth accelerated more than expected in October to excee ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

U.S. Factory Orders Jump More Than Expected In October

12/04/2020 - 10:34 AM (RTTNews)
(RTTNews) - Data released by the Commerce Department on Friday showed new orders for U.S. manufact ...Full Story>>

U.S. Trade Deficit Widens As Imports Rise More Than Exports

12/04/2020 - 10:13 AM (RTTNews)
(RTTNews) - With the value of imports rising by more than the value of exports, the Commerce Depar ...Full Story>>

U.S. Employment Rises Much Less Than Expected Amid Surge In Coronavirus Cases

12/04/2020 - 09:40 AM (RTTNews)
(RTTNews) - Reflecting renewed restrictions amid the recent surge in new coronavirus cases, the La ...Full Story>>

U.S. Trade Deficit Widens In October

12/04/2020 - 08:45 AM (RTTNews)
(RTTNews) - With the value of imports rising by more than the value of exports, the Commerce Depar ...Full Story>>

U.S. Employment Rises Much Less Than Expected In November

12/04/2020 - 08:39 AM (RTTNews)
(RTTNews) - A closely watched report released by the Labor Department on Friday showed U.S. job gr ...Full Story>>

Do not sell my personal information

Copyright © 2020. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.