Incoming Bangko Sentral Governor Felipe Medalla, who serves the remaining term of Gov. Benjamin Diokno who moves to the Department of Finance, said he would raise interest rates gradually and not more than 25 basis points (bps)

Medalla to raise interest rates gradually

Economists of some private banks are conflicted as to whether the Bangko Sentral should be more aggressive in its interest rate policies to curb inflation, or not.

BSP told to use more aggressive rate hikes

Historically there were two bourses—Manila and Makati Stock Exchanges. These were merged in 1992 and became the Philippine Stock Exchange (PSE). Now the trading floor of PSE will soon be closed by June 24—this Friday—because brokers have become used to online trading since the pandemic began in December 2020.

PSE to close trading floor

If there is anything I can say about the May inflation forecast of Bangko Sentral, where are they getting their figures on electric rates going down, lower rice prices and declining prices of LPG (cooking fuel).

May inflation forecast at 5 to 5.8 percent

The balance of payment deficit of the country deteriorated even more as government paid out current outstanding foreign loans and other expenditures.

BOP deficit widens by $210-M in May

The government spent P63.8 billion for infrastructure in May 2022 or up by 9.7 percent.

Govt.’s infra spending in April rose by 9.7%

Cash remittances by overseas Filipino workers in April expanded by 3.9 percent to $2.395 billion because more countries opened their economies to foreign workers with the easing of travel restrictions.

Remittances rose fastest in April 2022

The Philippine peso depreciated to its weakest level in four years, hitting P54 to $1. This was due to the weakening trade, rising oil prices and the continuing war in Ukraine.

Peso now at its weakest level of P54 to $1

No need to worry about stagflation as the Philippines had seen its economy grow by 8.3 percent in the first quarter and the easing of unemployment, credit activity and foreign investments. Inflation has been rising all over the world.

Are we headed for stagflation? BSP says no

Foreign portfolio investments (FPIs) in May slid by 55.7 percent or by $1.2 billion as against those of April of $2.2 billion. BSP-registered FPIs were mostly outflows amounting to $270 million.

Portfolio investments in May slide 55.7%

May inflation forecast at 5 to 5.8 percent photo Philippine Star

BOP deficit widens by $210-M in May photo Philippine Star

PSE to close trading floor photo Bloomberg

Portfolio investments in May slide 55.7% photo The Economic Times

Govt.’s infra spending in April rose by 9.7% photo Business Mirror

Are we headed for stagflation BSP says no photo Interaksyon

BSP told to use more aggressive rate hikes photo BusinessWorld

Remittances rose fastest in April 2022 photo Nikkei Asia

Peso now at its weakest level of P54 to $1 photo Rappler

Medalla to raise interest rates gradually photo BusinessWorld

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