00:00 The Banco Central ng Pilipinas or BSP has decided to continue hiking its policy rates in an effort to tame inflation
00:07 and bring it back to manageable levels and also help ease the rising prices of basic commodities.
00:14 Thus, the Monetary Board has opted to increase the key rate by 25 basis points to 6.5 percent
00:21 after being seemingly indecisive for four straight meetings as analysts have observed.
00:27 A higher policy rate, experts say, however, has both a positive and negative effect to the economy on a macro and micro level.
00:34 For banks, a higher policy rate is good as it would mean better margin levels of profit for them.
00:41 It is, however, considered a negative by investors who see it as a sign to shift to other interests bearing
00:47 and less volatile investments and also negative in the long term for companies
00:52 as it makes it harder for them to raise capital or secure loans that is needed in propagating business.
Comments