200 bps RR cut seen in 2H; lending to remain sluggish
(WorldNews Business)

The central bank is expected to reduce banks` reserve requirement (RR) ratio by 200 basis points (bps) this year but it will not likely lead to a pick up in lending activities, not when the COVID-19 virus and its emerging variants are still here, according to HSBC economists. HSBC managing director, Fan Cheuk Wan, also chief market strategist for Asia, said the Bangko Sentral ng Pilipinas (BSP) will likely release more liquidity by the second half of 2021 via the RR cut, and that BSP “will focus more on RR stimulus” to complement a “massive stimulus package” in government spending this year. When asked about HSBC`s opinion on the BSP`s other...