Central Bank Speaks on Capacity of PH If US Would Increase the Interest Rates

Central Bank Believes US Will Keep Interest Rates Low

CENTRAL BANK – Bangko Sentral ng Pilipinas spoke on the capacity of the Philippines in case the United States (U.S.) would increase the interest rates.

Countries are interconnect. The changes in a certain nation may not only affect its people but as well as other countries most especially those with ties to it. Thus, governments do not simply look on what’s within a nation but as well as the affairs with others.

Currently, one of the challenges that many nations are facing is the COVID-19 pandemic. It has been a year now since the spread of the coronavirus disease started and many nations are still on a rough battle to curb its spread.

Millions of lives were lost to the COVID-19 pandemic. It brought countries a “new normal” setting which is far from what people used to live with. It is also a very challenging time for the economy.

Amid the COVID-19 pandemic, a lot of businesses closed. Poor nations also had to find ways which includes taking loans to obtain fund in response to the demands of the pandemic. Many countries are economically struggling now.

One of the countries hit hard by the pandemic, in fact the one with the most number of cases confirmed reaching 30 million, is the United States. The nation recorded over half a million deaths due to the disease. Many businesses were also greatly affected in U.S.

Recently, a talk about the possible increase of the interest rates by U.S. was brought up by ABS-CBN’s Karen Davila to Philippine Central Bank Chief Benjamin Diokno. The BSP Head affirmed that the Philippines is “ready” in case U.S. would opt for it.

Meanwhile, according to Diokno, he does not think that U.S. will consider increasing the interest rates because of the midterm elections in the country in 2022. He believes the U.S. Federal “will not rock the boat”.

Furthermore, based on the report, Central Bank’s Chief believes U.S. will not consider increasing the interest rates as many countries have yet to win the fight against the COVID-19 pandemic. He believes that keeping the rates low is the right thing to do and he has belief on the Fed chairman about it.

Diokno stressed that while a huge part of the population of the Americans has already received the vaccines against COVID-19, there are still a lot of people across the globe who have not. He further expressed that “nobody’s safe until everyone’s safe”.

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