'50-bps rate cut not enough to stem COVID-19 impact' !-- --
However, monetary policy accommodation of a few basis points would hardly compensate or mitigate a supply shock," PNB economist
6 to support market confidence and to provide additional policy support to ward off the potential spillovers associated with increased external headwinds including COVID-19 outbreak. So far, the BSP has slashed interest rates by 100 basis points since May last year.
It also slashed the reserve requirement ratio for big and mid-sized banks by 400 basis points and for small banks by 200 basis points, freeing up
Last Thursday, Diokno said the central bank is not ruling out additional interest rate cuts if things deteriorate much beyond what was originally forecasted. BSP estimates showed the COVID-19 outbreak could slash the country's gross domestic product (GDP) growth by 0.
2 percentage points in the first quarter and by another 0.4 percentage points in the second quarter, bringing the full-year drag to 0.
3 percentage points for 2019. Trinidad said PNB has lowered this year's gross domestic product (GDP) growth target to a range of 6.2 to 6.
4 percent due to the impact of the COVID-19 outbreak. Trinidad warned the supply shock could expand to non-tourism sector as 23 percent of the country's exports were sourced from
He said foregone revenue losses from the tourism sector coupled with the supply shock impact on the industrial sector primarily in the manufacturing segment heighten downside risk in the first quarter GDP growth.
© Pakistan Press International, source