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1H 2024 Outlook: Long glide down
In our recent economic briefing, we show that the slower pace of the easing cycle of the US Fed and the Bangko Sentral ng Pilipinas presents some opportunities for investors.
By Ruben Zamora
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If you are looking for opportunities to invest, I see four themes that help guide you in your search.
During our recent event titled “2024 Mid-Year Economic Briefing: Navigating the Easing Cycle”, I shared four important trends to our clients.
1. Cooling inflation may prompt earlier BSP cut.
A significant contributor to inflation is the price of rice. Last June 4, in a bid to make rice more affordable to Filipinos, the National Economic and Development Authority (NEDA) slashed tariff rates for rice to 15% from 35%.
This will reduce the market price of rice to PHP 7 to PHP 9, way below what President Ferdinand Marcos Jr. promised in his campaign before he became the country’s leader. This will cut the contribution of rice to headline inflation to -0.2 to 0.2 percentage points, down from 1