THE Bangko Sentral ng Pilipinas (BSP) said household estimates of inflation have been improving in accuracy since 2014, possibly influencing monetary policy because household expectations are a factor in policy decisions. In an economic newsletter written by Alan Chester T. Arcin and Michael Lawrence G. Castañares, the BSP’s Department of Economic Research said household views […]
Tag: inflation
Monetary Board flags more rate hikes in Dec. meeting minutes
THE MONETARY Board signaled its readiness to continue raising benchmark interest rates if inflation persists, putting it at odds with other central banks which have indicated their intention to slow the pace of monetary tightening, according to the minutes of the board’s December meeting. When the board met last month to weigh another rate increase, […]
PSE index declines ahead of US inflation report
STOCKS closed lower on Tuesday, mirroring Wall Street’s decline, ahead of the release of December US consumer inflation data, which could give clues on the US Federal Reserve’s next policy move. The benchmark Philippine Stock Exchange index (PSEi) lost 33.55 points or 0.49% to close at 6,756.69 on Tuesday, while the broader all shares index […]
Confidence in rising incomes, inflation worries among the main findings of consumer survey
HOPES for rising incomes this year as well as concern over rising inflation were the main findings of a survey on consumer sentiment conducted by TransUnion, a US credit reporting agency. “Consumers’ mixed sentiments reflect the complex dynamics facing the Philippines along with many other nations, as the world continues to recover from more than […]
Inflation accelerates to 8.1% in December
By Keisha B. Ta-asan, Reporter INFLATION ACCELERATED to a fresh 14-year high in December, as prices of food, particularly vegetables, surged during the holiday season, the Philippine Statistics Authority (PSA) said on Thursday. Preliminary PSA data showed annual inflation quickened to 8.1% in December, from 8% in November and 3.1% in December 2021. This was […]
HSBC sees Philippines remaining ‘resilient’ as growth slows to 4.4%
HSBC Holdings PLC said on Thursday that it expects Philippine growth to remain “resilient” even as it slows to 4.4% in 2023. “We think that (the) Philippine economy will slow down but it will still be fairly resilient at around 4.4% for 2023. Of course, inflation is still going to be an issue,” HSBC Southeast Asia […]
Stocks rise on slower-than-expected inflation
STOCKS continued to rally on Thursday as December inflation came in below market expectations despite picking up from the November level. The 30-member Philippine Stock Exchange index (PSEi) went up by 42.83 points or 0.63% to close at 6,761.33 on Thursday, while the broader all shares index added 13.38 points or 0.37% to end at […]
PSEi up as factory activity hits 6-month high
PHILIPPINE SHARES continued to rise on Wednesday as local manufacturing activity improved in December, indicating a robust economy. The bellwether Philippine Stock Exchange index (PSEi) surged by 132.49 points or 2.01% to close at 6,718.50 on Wednesday, while the broader all shares index rose by 60.37 points or 1.73% to 3,537.07. “Stocks moved higher as […]
Consumption unlikely to remain resilient as inflation bites
By Luisa Maria Jacinta C. Jocson, Reporter HOUSEHOLD consumption is not likely to sustain its growth in 2023 amid rising inflation and signs of further policy tightening by the Bangko Sentral ng Pilipinas (BSP), analysts said. “The overly aggressive tightening of the BSP this year is a big headwind for growth in 2023. We also […]
BSP sees Dec. inflation up to 8.6%
HEADLINE INFLATION likely settled within the 7.8% to 8.6% range in December due to higher electricity rates and rising food prices, the Bangko Sentral ng Pilipinas (BSP) said on Thursday. “Upward price pressures for the month are expected to emanate from higher electricity rates, uptick in the prices of agricultural commodities, elevated meat and fish […]
BSP projects December inflation to hit 7.8% to 8.6%
THE Bangko Sentral ng Pilipinas (BSP) on Thursday said it projects inflation in December to hit within the range of 7.8 to 8.6 percent. The central bank said higher electricity rates, an uptick in the prices of agricultural commodities, elevated prices of meat, fish products, and LPG may push the inflation rate higher. “Meanwhile, the […]
RCBC projects 2023 inflation average at 4.5-5.5%
RIZAL Commercial Banking Corp. (RCBC) said average inflation is expected to slow to 4.5% to 5.5% in 2023 as oil prices ease, with the lower end of his forecast in line with the government’s official projection of 4.5%. In an email, the bank’s Chief Economist Michael L. Ricafort said he sees inflation in the first quarter averaging […]
BSP raises rates by 50 bps, signals more tightening
THE BANGKO SENTRAL ng Pilipinas (BSP) on Thursday raised its benchmark interest rate to its highest in 14 years, and signaled more tightening albeit at a slower pace. The Monetary Board (MB) increased its overnight borrowing rate by 50 basis points (bps) to 5.5%, as predicted by 13 of 15 analysts in a BusinessWorld poll […]
ECB slows rate hikes but pledges more to keep up inflation fight
FRANKFURT — The European Central Bank (ECB) eased the pace of its interest rate hikes on Thursday but stressed significant tightening remained ahead and laid out plans to drain cash from the financial system as part of a dogged fight against runaway inflation. After being wrong-footed by sudden price rises, the ECB has been raising […]
DBS Bank sees PHL growth slowing to 6.3% in 2023
GROWTH of the Philippine economy will likely slow to 6.3% next year from a 2022 rate of at least 7%, Singapore’s DBS Bank said, noting the impact of high inflation, interest rates, and fading pent-up demand. In a report written by DBS economists Chua Han Teng, Radhika Rao, and Irvin Seah, the bank said […]
PHL unlikely to fall into a recession, Marcos says
A RECESSION is unlikely in the Philippines, according to President Ferdinand R. Marcos, Jr., citing the improvement in jobs market in October. “I’m confident that recession will not happen in the Philippines because the unemployment rate is very low and if you remember, this administration has been prioritizing the creation of jobs since the beginning,” […]
Stocks climb on positive sentiment, Fed bets
STOCKS climbed on Tuesday, snapping a three-day losing streak, as investors remained bullish on the Philippines’ prospects, even with inflation hitting a 14-year high last month and on expectations of smaller US Federal Reserve rate hikes. The Philippine Stock Exchange index (PSEi) added 232.25 points or 3.6% to close at 6,674.38 on Tuesday, while the […]
Peso rebounds on rate hike expectations
THE PESO strengthened versus the dollar on Tuesday despite profit taking after the release of November inflation data that cemented expectations of another rate hike from the Bangko Sentral ng Pilipinas (BSP) this month. The local unit closed at P55.975 per dollar on Tuesday, gaining 4.5 centavos from its P56.02 finish on Monday, data from […]
Local shares fall on last-minute profit-taking
LOCAL STOCKS declined further on Monday on profit-taking ahead of the release of November inflation data. The 30-member Philippine Stock Exchange index (PSEi) lost 47.52 points or 0.73% to close at 6,442.13 on Monday, while the broader all shares index decreased by 15.72 points or 0.46% to 3,403.93. “Local stocks continued to falter amid persisting […]
Peso may continue to climb vs dollar ahead of inflation data
THE PESO may continue to strengthen against the dollar this week ahead of the release of November inflation data that could give the Bangko Sentral ng Pilipinas (BSP) impetus to hike interest rates further. The local unit returned to the P55-per-dollar level on Friday, closing at P55.74, surging by 48 centavos from its P56.22 finish […]