Bangko Sentral may cut rates 'preemptively': Standard Chartered


Posted at Feb 25 2020 10:52 AM | Updated as of Feb 25 2020 01:05 PM

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MANILA -- The Bangko Sentral ng Pilipinas could cut interest rates earlier than expected to "preempt" the fallout from a global slowdown, an analyst said Tuesday.

The BSP could implement its second 25-basis point cut for the year "possibly in May or even earlier," Standard Chartered Asia economist Chidu Narayanan told ANC's Market Edge.

The International Monetary Fund earlier this week said the coronavirus outbreak that originated in China and is now spreading rapidly in South Korea and Italy put the fragile global recovery at risk.

“We think that the central bank will be cutting rates as soon as possible if required. The governor has been very clear that they are extremely keen to act preemptively in case of negative impact on growth, any potential slowdown in growth,” Narayanan said.

The Philippines is in “good shape” to withstand global shocks as growth drivers come from the domestic side, he said.