On Saturday, Governor of the Bangko Sentral ng Pilipinas (BSP) Benjamin Diokno stated that the bank supports the coordinated measures with the Philippines’ government to cushion the economy from the coronavirus pandemic impact.
The BSP supports the economic stimulus bills aiming to assist the country as the country’s unemployment rate touched a record high of 17.7% in April.
“The central bank’s proactive and decisive monetary actions were strategic in containing volatility and ensuring confidence in the financial markets and avoiding further damage to the economy,” Diokno commented.
The relief efforts have helped to provide around PHP1.1 trillion (USD22 billion) into the financial system. The Benchmark interest rate has been slashed by 125 bp to 2.75%, the reserve requirement ratio (RRR) was lowered by 2 ppts, rules on bank capital and reserves have been eased, along with other measures to stabilize the bond market.
Diokno opined that job creations will be uneven during the transition. He opined that the construction and manufacturing sectors can easily be restarted, while industries like tourism might take a longer time to restart.
