A slightly higher inflation rate that remains below two percent in June would allow the Bangko Sentral ng Pilipinas (BSP) to cut interest rates some more in August, economists said. In a June 27 report, Deutsche Bank Research economist Junjie Huang said headline inflation could have inched up to...
Despite double-digit exports growth in the first five months of the year, economic think tanks expect the sales of Philippine-made goods overseas to falter in the second half, especially if United States (US) President Donald Trump pushes through with his tariff spree. “Exports are also likely to...
The Philippines’ plan to temper spending on public goods and services in a bid to narrow its budget deficit to pre-pandemic levels may slow economic growth, according to the think tank Capital Economics. “Monetary easing across the region should support consumption and investment, but tighter...
Downward inflation across the region would allow Asian central banks, including the Bangko Sentral ng Pilipinas (BSP), to cut interest rates further until year-end, according to the think tank Oxford Economics. “Inflation in Asia is approaching or has already fallen below the lower bound of...
While the Bangko Sentral ng Pilipinas (BSP) sees no need just yet to defend the Philippine peso amid global oil price risks, the plunging local currency may push monetary authorities into more cautious policy easing moving forward, economists said. Japanese financial giant MUFG Bank Ltd. said that...
Even as the Philippine peso depreciated against the United States (US) dollar at a pace that was among the worst among emerging market (EM) currencies last week, the Bangko Sentral ng Pilipinas (BSP) is still expected to cut interest rates this week. Data from the Bankers Association of the...
The Philippines has a "low" sovereign debt risk despite its ballooning obligations, but think tank Capital Economics cautioned that emerging markets (EMs) with better managed public finances should not rest on their laurels amid lingering fiscal strains. In a June 12 report authored by Capital...
Expectations are growing among foreign banks for the Bangko Sentral ng Pilipinas (BSP) to reduce key interest rates consecutively when its Monetary Board (MB) decides on the policy stance in June and August, with global investment banking giant Goldman Sachs joining the chorus. "We continue to...
Money sent home by Filipinos working and living in the United States (US) is seen at risk from the remittance tax proposal pending in the US Congress, according to the think tank Capital Economics. "The proposed five-percent US tax on remittance outflows would have a particularly large negative...
Another 25-basis-point (bp) interest rate cut by the Bangko Sentral ng Pilipinas (BSP) is widely expected at its monetary policy meeting next month, as inflation slides and economic growth weakens. In a May 9 report, Deutsche Bank Research said the lower-than-expected 5.4-percent gross domestic...
Inflation would likely fall to a five-year low in 2025, providing policy space for more interest rate cuts supportive of economic growth, according to the think tank Capital Economics. "We expect GDP [gross domestic product] growth in the Philippines to remain relatively strong in 2025, helped by...
Emerging market (EM) currencies, including the Philippine peso, gained versus the United States (US) dollar in the aftermath of US President Donald Trump's tariff spree, according to the think tank Capital Economics. "EM currencies have generally strengthened against the dollar since 'Liberation...
