Watch more in iWant or TFC.tv MANILA – The Bangko Sentral ng Pilipinas' interest rate cut last week can help "jumpstart" economic growth, an economist said Monday, adding financial markets were awaiting further loosening in monetary policy. Investors are expecting a 100-basis point cut in the reserve ratio requirement for banks after the BSP cut the benchmark lending rate by 25 basis points, said Security Bank chief economist Robert Dan Roces. “The delayed spending crept into the second quarter… The hope of the 25 basis point cut is to jumpstart at least some of the support systems for the infrastructure program,” Security Bank chief economist Robert Dan Roces told ANC. The BSP cut lending rates after second quarter gross domestic product growth came in at the lowest in 4 years. Philippines GDP grows at slowest pace in 4 years BSP's Diokno: Banks' reserve requirement may be cut in September … [Read more...] about Interest rate cut seen to help ‘jumpstart’ growth: economist
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BRASILIA: Brazil's central bank slashed interest rates to a record low on Wednesday (Jul 31) in response to the worsening outlook for Latin America's biggest economy.The bank cut its main rate to six percent from the previous historic low of 6.5 per cent, which had been unchanged since March 2018.The unanimous decision was announced shortly after the US Federal Reserve made its first interest rate cut in more than a decade.Brazil's monetary policymaker had been resisting pressure to reduce borrowing costs for fear of fanning inflation as President Jair Bolsonaro struggled to push his signature pension reform bill through Congress.But the controversial measure cleared a key hurdle earlier this month after the lower house voted overwhelmingly in favor of the proposed changes.The plan to introduce a minimum retirement age and increase contributions over a longer period of time is seen as crucial to Bolsonaro's ability to deliver on other promised measures to shake up the economy, … [Read more...] about Brazil’s central bank cuts interest rates to record low
SAN FRANCISCO: U.S. central bankers are expected to lower borrowing costs this week for the first time since the depths of the financial crisis more than a decade ago. That's the easy part.Whether that inaugurates a series of quarter-percentage-point interest rate cuts that could stretch deep into next year, as financial markets are betting, or something more limited is by far the harder decision facing Federal Reserve policymakers.One reason: No clear consensus from Fed officials about why they need to cut rates in the first place, particularly with the U.S. unemployment rate near a 50-year low and the American economy puttering along as the best-in-class performer among developed nations.Is it a bit of insurance against risks posed by slowing global growth and trade tensions? A step to bolster sluggish inflation? A bid to lift labor markets further? An effort to right kinks in the bond market? Over the last several weeks, Fed policymakers have floated each of these ideas and … [Read more...] about A Fed interest rate cut is in the bag. What then?
SEOUL: South Korea’s central bank on Thursday cut its key interest rate for the first time in three years as the economy struggles with sluggish global growth and with the country is embroiled in a trade spat with Japan. The Bank of Korea (BOK) lowered its key rate to 1.5% from 1.75%, citing slowing exports and “increased” volatility in domestic financial markets. It joins a growing number of central banks worldwide that reduced borrowing costs to shore up their economies in the face of a prolonged trade dispute between the US and China. At the same time long-standing tensions between South Korea and Japan over the use of forced labour during World War II have bubbled over into a trade row that experts warn could hammer the global tech market. Japan has restricted exports of three chemicals crucial to South Korea’s tech sector and used by major firms including Samsung Electronics and SK Hynix in the manufacture of microchips and smartphones. Given the volume of … [Read more...] about South Korea cuts interest rate as Japan trade row simmers
KUALA LUMPUR: Malaysia's central bank Tuesday (May 7) cut its key interest rate for the first time in almost three years as it looks to boost slowing growth as China-US trade tensions weigh on the economy.The move comes as central banks around the world adopt a more dovish stance in the face of a weak global outlook.Bank Negara Malaysia cut the rate from by 25 basis points to 3.00 per cent, the first reduction since July 2016. The last change was in January 2018 when borrowing costs were increased to 3.25 per cent.The bank said "considerable downside risks to global growth remain, stemming from unresolved trade tensions and prolonged country-specific weaknesses in the major economies"."Heightened policy uncertainties could lead to sharp financial market adjustments," it added.Malaysia is showing signs of being affected by the long-running trade dispute between Beijing and Washington, while the global economy at the same time shows signs of softness.The cut comes as central banks … [Read more...] about Malaysia cuts interest rate for first time since 2016