2 months BSP’s credibility hinges on ‘effective’ signalling of policy MB |Biz
By Lee C. Chipongian The central bank’s credibility, under Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno, is crucial to managing expectations with the market assuming another 50 to 75 basis points (bps) cut to interest rates this year to support growth. MB file photo. “What is key here is proper signaling to the market so as not to catch them off guard with a move from left field,” said ING Bank senior economist Nicholas Mapa. “(Governor) Diokno recently sounded off on the importance of credibility stating that ‘without credibility, central banks resort to traditional aggressive tools to achieve ... more