RECENT NEWS
Philippines: BSP Off Cycle Rate Hike
BSP lifts key rate by 25 bps to 6.5%
The Bangko Sentral ng Pilipinas (BSP) raised the policy rate by 25 bps to 6.5% (from 6.25%), in an off-cycle rate hike. The BSP cites the projection for elevated inflation over a longer period as the main reason for the rate hike. The BSP also warned that they expect inflation to remain above its target range until the middle of 2024. The BSP is still considering further tightening in its next monetary policy meeting on November 16 if further data indicate worsening signs.
Source: BusinessWorld Online. (2023, October 27). BSP lifts key rate by 25 bps to 6.5%.
BSP lifts key rate by 25 bps to 6.5%
The Bangko Sentral ng Pilipinas (BSP) raised the policy rate by 25 bps to 6.5% (from 6.25%), in an off-cycle rate hike. The BSP cites the projection for elevated inflation over a longer period as the main reason for the rate hike. The BSP also warned that they expect inflation to remain above its target range until the middle of 2024. The BSP is still considering further tightening in its next monetary policy meeting on November 16 if further data indicate worsening signs.
Source: BusinessWorld Online. (2023, October 27). BSP lifts key rate by 25 bps to 6.5%.
Philippines: Maharlika Investment Fund
Marcos says Maharlika fund will start operating by yearend
Marcos announces that the operations of the Maharlika Investment Fund (MIF) are to begin by year-end just after announcing the suspension of its operations a few days prior. The main reason for its suspension was to further improve the fund to make it as perfect as possible. Now that they have found improvements, specifically to the organizational structure of the fund, they deem it fit to jumpstart its operations once again.
Source: BusinessWorld Online. (2023, October 20). Marcos says Maharlika fund will start operating by yearend.
Marcos says Maharlika fund will start operating by yearend
Marcos announces that the operations of the Maharlika Investment Fund (MIF) are to begin by year-end just after announcing the suspension of its operations a few days prior. The main reason for its suspension was to further improve the fund to make it as perfect as possible. Now that they have found improvements, specifically to the organizational structure of the fund, they deem it fit to jumpstart its operations once again.
Source: BusinessWorld Online. (2023, October 20). Marcos says Maharlika fund will start operating by yearend.
Philippines: BOP Deficit
BoP deficit narrows in Sept.
The Bangko Sentral ng Pilipinas (BSP) reports that the Philippines’ balance of payments (BOP) deficit narrowed year on year to USD414m from USD2.34bn. Month on month, the BOP deficit widened from the USD57m reported in August. The BOP deficit is mainly attributed to the payment of foreign currency debt obligations. The BSP is forecasting a lower BOP deficit of USD127m this year and a surplus of USD1bn in 2024.
Source: BusinessWorld Online. (2023, October 20). BoP deficit narrows in Sept.
BoP deficit narrows in Sept.
The Bangko Sentral ng Pilipinas (BSP) reports that the Philippines’ balance of payments (BOP) deficit narrowed year on year to USD414m from USD2.34bn. Month on month, the BOP deficit widened from the USD57m reported in August. The BOP deficit is mainly attributed to the payment of foreign currency debt obligations. The BSP is forecasting a lower BOP deficit of USD127m this year and a surplus of USD1bn in 2024.
Source: BusinessWorld Online. (2023, October 20). BoP deficit narrows in Sept.
Philippines: OFW Remittances
Remittances climb 2.7% in August
Data from the Bangko Sentral ng Pilipinas (BSP) indicate that the OFW remittances in August increased by 2.7% year on year, to USD2.79bn from USD2.72bn in August 2022 and is the fastest pace since May. The BSP cites the increased receipts from both land and sea-based workers for the growth in remittances and expects remittances to grow by 3% this year. However, the projected economic slowdown and prolonged Israel-Hamas war are events to watch out for as these could possibly slowdown remittances.
Source: BusinessWorld Online. (2023, October 17). Remittances climb 2.7% in August.
Remittances climb 2.7% in August
Data from the Bangko Sentral ng Pilipinas (BSP) indicate that the OFW remittances in August increased by 2.7% year on year, to USD2.79bn from USD2.72bn in August 2022 and is the fastest pace since May. The BSP cites the increased receipts from both land and sea-based workers for the growth in remittances and expects remittances to grow by 3% this year. However, the projected economic slowdown and prolonged Israel-Hamas war are events to watch out for as these could possibly slowdown remittances.
Source: BusinessWorld Online. (2023, October 17). Remittances climb 2.7% in August.
Israel-Hamas war
US pushes allies for more sanctions on Hamas
European allies face US pressure to widen and reinforce their sanctions on Hamas. The Biden administration said that cracking down on their sources of funding would limit their financial capabilities and escalate conflict with Israel. A further escalation of the conflict by bringing regional neighbors into the conflict would kill more civilians, rattle oil and gas markets, and trigger another threat of global inflation and recession.
Source: Financial Times. (2023, October 28). US pushes allies for more sanctions on Hamas.
US pushes allies for more sanctions on Hamas
European allies face US pressure to widen and reinforce their sanctions on Hamas. The Biden administration said that cracking down on their sources of funding would limit their financial capabilities and escalate conflict with Israel. A further escalation of the conflict by bringing regional neighbors into the conflict would kill more civilians, rattle oil and gas markets, and trigger another threat of global inflation and recession.
Source: Financial Times. (2023, October 28). US pushes allies for more sanctions on Hamas.
Russian Ruble
Russia Hikes Interest Rates Despite World’s Biggest Currency Surge
Russia’s central bank raised interest rates to 15%, despite being the best performing currency. The policymakers chose to raise rates for the fourth straight time due to controlling inflation after the reimposition of capital controls took pressure off the ruble.
Source: BusinessWorld Online. (2023, October 27). Russia Hikes Interest Rates Despite World’s Biggest Currency Surge.
Russia Hikes Interest Rates Despite World’s Biggest Currency Surge
Russia’s central bank raised interest rates to 15%, despite being the best performing currency. The policymakers chose to raise rates for the fourth straight time due to controlling inflation after the reimposition of capital controls took pressure off the ruble.
Source: BusinessWorld Online. (2023, October 27). Russia Hikes Interest Rates Despite World’s Biggest Currency Surge.
Eurozone Inflation
ECB’s High Interest Rates Probably Stalled Euro-Zone Economy
Third-quarter data is expected to show zero or negative growth due to successive 10 interest-rate hikes by the European Central Bank. On the upside, economists believe that inflation will get back to 2% sooner than the ECB forecast because of weaker economic activity.
Source: Bloomberg. (2023, October 27). ECB’s High Interest Rates Probably Stalled Euro-Zone Economy.
ECB’s High Interest Rates Probably Stalled Euro-Zone Economy
Third-quarter data is expected to show zero or negative growth due to successive 10 interest-rate hikes by the European Central Bank. On the upside, economists believe that inflation will get back to 2% sooner than the ECB forecast because of weaker economic activity.
Source: Bloomberg. (2023, October 27). ECB’s High Interest Rates Probably Stalled Euro-Zone Economy.
US Inflation
US Core PCE Prices Jump Most in Four Months as Spending Picks Up
Core inflation rose 0.3% in September as expenditures on cars, prescription drugs, and travel drive pickup in spending. The Fed is expected to leave interest rates unchanged due to a rapid surge in 10-year treasury yields.
Source: Bloomberg. (2023, October 27). US Core PCE Prices Jump Most in Four Months as Spending Picks Up.
US Core PCE Prices Jump Most in Four Months as Spending Picks Up
Core inflation rose 0.3% in September as expenditures on cars, prescription drugs, and travel drive pickup in spending. The Fed is expected to leave interest rates unchanged due to a rapid surge in 10-year treasury yields.
Source: Bloomberg. (2023, October 27). US Core PCE Prices Jump Most in Four Months as Spending Picks Up.
Oil & Gas
Big Oil bets big on extended life for fossil fuels
U.S. companies are betting on fossil fuels more despite the Biden administration’s promise to promote a greener future. This comes after two oil giants announced mergers and acquisition of fellow US oil producers. ExxonMobil consolidated its holding on the Permian Basin for $60 billion while Chevron has announced a $53 billion deal to buy Hess.
Source: Financial Times. (2023, October 28). Big Oil bets big on extended life for fossil fuels.
Contributors:
Natasha Amber Cabiltes
Edgar Desher Empeño
Jose Lorenzo Mercado
Brendan Emmanuel Miranda
Jacobe Joaquin Sevilla
Big Oil bets big on extended life for fossil fuels
U.S. companies are betting on fossil fuels more despite the Biden administration’s promise to promote a greener future. This comes after two oil giants announced mergers and acquisition of fellow US oil producers. ExxonMobil consolidated its holding on the Permian Basin for $60 billion while Chevron has announced a $53 billion deal to buy Hess.
Source: Financial Times. (2023, October 28). Big Oil bets big on extended life for fossil fuels.
Contributors:
Natasha Amber Cabiltes
Edgar Desher Empeño
Jose Lorenzo Mercado
Brendan Emmanuel Miranda
Jacobe Joaquin Sevilla