Julia Goh, senior economist at UOB Group, and economist Loke Siew Ting, reviewed the Philippine central bank’s (BSP) most recent interest decision.
“Bangko Sentral ng Pilipinas (BSP), as expected, kept its night buyback rate (PVR) unchanged for the time of consecutive assembly at a record point of 2. 25% Array. As a result, day-to-day loan rates at 2. 75% and 1. 75% respectively. The mandatory reserve ratio (RRR) of advertising banks also remained intact at 12. 00%. »
“Today’s rate resolution came at a time when the inflation outlook remains consistent with the central bank’s assessment of declining projection rates by 2020-2022, global economic activity has stabilized in recent weeks, and encouraging symptoms of a recovery in domestic economic activity are emerging. The dangers of the problem to the inflation outlook can basically come from possible disruptions in national and global economic activity amid the existing pandemic. As a result, BSP believes that a continued pause in rates will allow past measures to advance in the economy. , while the slow easing of government constraints and sustained efforts help raise market confidence and announce economic recovery in the coming months.
“In short, the overall tone of the most recent financial policy is considered to be a little more positive than in August. This leads to an increase consistent with the chances of a prolonged BSP-consistent rate breakdown through 2021. In addition to this, the governor of BSP also said in an interview with ANC Market Edge on September 21 that the financial government deserves to maintain the existing financial framework for the next two years to help the economy fully recover from the impact of the pandemic . . . As such, we believe that BSP will unchanged the RRP rate and RRR of advertising banks by 2. 25% and 12. 00% respectively until 2021. »
The GBP/USD pair trades around 1. 30 in the day. Hopes for progress in Brexit and US stimulus are driving on par, while considerations of a UK blockade weigh on the pound.
The EUR/USD pair trades around 1,1850 in a month. Optimism about a U. S. stimulus is driving markets and weighing on the dollar. Investors are unaware of the accumulation of COVID-19 cases in the euro dominance and the ECB’s stimulus outlook. .
Gold was traded with a positive bias the first part of the European consultation and cooled daily peaks, around the $1923 region during the last hour, although it lacked false follow-up.
Stocks and gold are rising, the safe haven dollar is falling in the hope that U. S. lawmakers will present a plan of support for the economy. Being watched.
The USD/JPY is testing lows and approaching 105. 00, basically due to a general weakness in the US dollar, while progress in US fiscal stimulus talks is coming. But it’s not the first time It has boosted market confidence and weighed on the dollar’s refuge value.
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