Economy

Despite benchmark interest rates remaining steady, rate hikes are not yet off the table.

This week, the 10-year auction takes center stage. It is an opportunity for those who were priced out of the 7-year offering last week to take positions.

August inflation has risen anew due to supply-driven shocks, prompting us to revise our 2023 outlook.

(First of two parts) Reducing our carbon footprint is not easy. But we are getting a solid foothold in key areas of government policy, legislation, and private sector initiatives.

In August, headline inflation rose anew driven by higher food prices particularly rice.

China recently went to deflation which led to comparisons with Japan’s decade-long struggle with deflation in the 90’s. What are the parallels between the two powerhouse economies and do signs point to another deflation crisis in the making?

As an inflation-targeting central bank, newly appointed BSP Governor Eli Remolona described the BSP as “structurally hawkish.” He consistently kept a hawkish stance on the BSP’s monetary policy direction due to the upside risks to inflation despite the downtrend in recent months.

With notably sluggish GDP growth in the 2nd quarter and upside risks to slowing inflation, we have revised our forecasts for 2023 and 2024.

The policy rate may likely remain at 6.25% for the rest of the year.

Dampened government and investment spending as well as slowing consumption contribute to deceleration in GDP growth.