UOB senior economist Julia Goh and economist Loke Siew Ting discussed the Philippine government’s resolve to generate a financial stimulus to help the national economy recover from the effect of COVID-19.
“Philippine President Rodrigo Duterte signed the Bayanihan to Recover as One Act (Bayanihan 2) as a law last Friday (September 11). The newly signed law provides a FUND of PHP 165. 5 billion to fund the country’s reaction and recovery interventions to mitigate the effect on the COVID-19 pandemic (compared to PHP 275 billion under Bayanihan 1). »
“Bayanihan 2 authorizes Bangko Sentral ng Pilipinas (BSP), under the new Central Bank Act [or Republic Act (RA) No. 7653)], to make further direct interim advances with or without national government interest (GN) to finance and respond to expenses that will be the COVID-19 scenario. It allows the central bank to provide more credits of up to 10% of the government’s average revenue over the more than 3 years, equivalent to around PHP 282 billion. This brings the roof BSP loan to NG at 30%, or around 820 billion PHP, compared to 20% or 540 billion beyond PHP. “
“The signing of the Bayanihan 2 Act and the proposal for a maximum borrowing limit through GN are noted as appropriate measures to achieve a sustainable economic recovery after the fitness crisis. However, the uncertainties surrounding COVID-19 infections still lead us to have a cautious view of a modest economic recovery to come. This new law is not expected to have a significant effect on inflation and currency (Weight, PHP) in the short term. »
The EUR/USD trades below 1. 18 after falling to one-month lows. The Fed has refused to sign an imminent recovery despite a dubious picture of the economy. Unemployment applications and other figures are expected.
Gbp/USD trades around 1,2950, down after the Fed provided no further stimulus. The BOE deserves to leave rates unchanged and comment on existing economic conditions. Brexit’s optimism got used to the pound.
The gold is located on a slippery floor after reversing the one-month triangle, the falls of yellow steel mark its U-turn from the line of a short-term symmetrical triangular formation established since August 12.
The Fed’s reluctance to sign an additional stimulus despite cautious forecasts weighs on equity markets and pushes the safe haven dollar upwards. Weekly unemployment records and the Bank of England resolution were published on Thursday.
WTI is about to lose strength after a strong uptick. Bears will need to see the resistance make the paintings and open up opportunities down. From a 4-hour perspective, value has risen to 7. 88% in the market. last thirteen bars.
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