MANILA: The Philippine central bank resumed its monetary policy easing on Thursday (April 10), moving to support confidence and growth as markets are whipsawed by changing US plans to impose global tariffs.
The Bangko Sentral ng Pilipinas reduced its target reverse repurchase rate by 25 basis points to 5.5%, a move seen by all but two of 28 economists in a Bloomberg survey. The two had predicted a pause.
Global markets were pummeled after President Donald Trump unveiled tough new tariffs, though the 17% rate set on US imports from the Philippines was lower than for neighbours Indonesia, Malaysia and Vietnam.
Asian markets rallied today after Trump announced a 90-day pause on the new levies, with most countries instead being taxed at a base rate of 10%, even as he raised duties on China to 125%.
The Philippine central bank last week said that uncertainty over global economic policies and their impact on the domestic economy has "increased significantly” even as inflation slowed to a five-year low in March.
Policymakers unexpectedly kept the benchmark interest rate unchanged in their February meeting after three consecutive cuts, although the BSP last month reduced banks’ reserve requirement ratio, freeing about 300 billion pesos (US$5.2 billion) into the Philippine financial system. - Bloomberg
