Pre-emptive rate cut by Philippines’ central bank
MANILA - The Philippines' central bank, Bangko Sentral ng Pilipinas (BSP) today cut its overnight reverse repurchase rate (RRP) by 25bps to 3.75%.
The bank positioned the cut as a pre-emptive measure to guard against downside risks from past natural disasters, and, more recently, the novel coronavirus (2019-nCoV).
Commenting on the move, Australia' s ANZ Bank said ite expects the BSP to undertake one additional 25bp cut this year, likely in Q2.
"However, a higher-than-expected impact from the coronavirus may extend the easing cycle further," ANZ said in a research note. www.live.anz.com (ATI).