spot_img
27.8 C
Philippines
Friday, March 29, 2024

RCBC expects further Bangko Sentral easing

- Advertisement -

Rizal Commercial Banking Corp., the ninth-largest lender in terms of assets, said Tuesday it expects the continued monetary easing measures by the Bangko Sentral ng Pilipinas to help the economy recover from the effects of the pandemic.

RCBC chief economist Michael Ricafort said the Philippine bond or fixed income market was one of the world’s best performing, with price gains of about +15 percent recently, in view of the sharp reduction in key BSP policy rates since the start of 2020.

The BSP reduced the policy rates by 200 basis points this year to a record-low of 2 percent to boost liquidity and spur domestic activity to counter the impact of the health crisis. Ricafort considered BSP’s move “among the most aggressive rate cuts worldwide.”

He said that Philippine bond yields could go up from record lows as recovery, both locally and worldwide, picks up further due to the re-opening of economies.

“This is seen to lead to an upward normalization of global and local interest rates from record lows or unusual levels seen this year,” he said.

- Advertisement -

LATEST NEWS

Popular Articles