BENJAMIN DIOKNO Q&A

摘要

Q The central bank, Bangko Sentral ng Pilipinas (BSP), has been taking steps to protect the economy during [the crisis]. Can you explain some of the processes that the central bank is implementing? And did this speed up the decision to cut rates? A The global pandemic has highlighted the fragility of human life and my thoughts go out to all that have been affected by it. In the Philippines, we are taking decisive and necessary actions to protect Filipino lives and livelihoods, especially the most vulnerable. However, we as a nation have entered into this crisis with armour and buffers that are helping us to manage the impact as best as possible. The BSP has demonstrated boldness in terms of mitigating the impact of Covid-19 on livelihoods through a series of actions. First, we have cut our interest rate by 125 basis points (bps) to 2.75%. Lower interest rates will mean cheaper loans for businesses and households. Second, we implemented 200bps cuts in the reserve requirement ratios to increase liquidity and encourage banks to continue lending. Third, the purchases of 300bn pesos ($5.9bn) of government bonds in the secondary market gave the government more fiscal space to direct financial help to frontliners, families and businesses who need it most.