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200117 Market Outlook

BSP’s New Weapon

January 17, 2020

 

Expect the BSP to be confidently reducing bank reserve requirement until BSP Governor Diokno’s term ends in 2023 but only in an environment of price stability defined as 2%-4% medium term inflation target. BSP’s confidence arises from a new open market instrument set to be launched soon intended to “sterilize” inflationary money supply from the triple R cuts. It’s being longer than term deposit facility of the BSP (TDF) makes it more potent and it being a bond makes it tradeable.

200103 Market Outlook

2020 Global and EM Market Views

January 3, 2020

 

“2020 is not a year of recession,” said Rick Lacaille, global chief investment officer at State Street Global Advisors. “We expect the global economic recovery to continue into 2020 against a backdrop of continued monetary easing, policy shifts and persistent pockets of resilience. Low inflation, robust consumer spending and a relatively strong global services sector combine to propel the cycle forwards. There are clear risk factors but overall, we expect world real GDP growth of 3.4 percent, up from our projection of 3.2 percent in 2019.”