![\"\"](\"/wp-content/uploads/2021/04/BW-Bullseye-2020-030420.jpg\")
The pandemic that has killed more than 60,000 Filipinos and 6.4 million people worldwide has tested the limits of Filipino health workers toiling at local hospitals. Many of them have since left the country to pursue greener pastures overseas.VINCENT GIAN N. SALAZAR, 26, fulfilled his lifelong dream by moving to the US as a healthcare practitioner in 2021, when the Philippines was reeling from the sting of a global coronavirus pandemic.
\nThe California-based Filipino now earns 10 times what he used to get as a medical technologist at a hospital in the Philippine capital.
\n\u201cI continued my medical profession in another country to advance my career, which is difficult to do in our country,\u201d he said in a Facebook Messenger chat.
\nThe pandemic that has killed more than 60,000 Filipinos and 6.4 million people worldwide has tested the limits of Filipino health workers toiling at local hospitals. Many of them have since left the country to pursue greener pastures overseas.
Some nurses in private hospitals in the provinces get as low as about P5,000 a month, said Robert Mendoza, president of the Alliance of Healthcare Workers.
\nIn 2020, the Philippine government raised the starting salary of nurses in state-owned hospitals to about P32,000 ($582) from P22,000. But some of the higher-ranking nurses got demoted and had to settle for their old rates.\u00a0 \u00a0
\nCristy V. Donguines is one of the country\u2019s health workers who had been through the worst of the pandemic.
\nFor many months, she depended on the goodwill of their village patrol that took her to a meeting place in Bulacan province northwest of Manila so she could share a ride with a co-worker for a nearly two-hour journey to reach Jose Reyes Memorial Medical Center in downtown Manila.
\n\u201cIf the government can afford to double the salary of policemen, it should also be able to do the same for frontline health workers,\u201d she said by telephone.
\nLocal health workers had to sacrifice a lot especially every time a surge in coronavirus infections took place, many of them having to isolate themselves after being exposed to the virus. Transmitting the virus to their loved ones was a constant fear.
\n\u201cMore importantly, at the height of the pandemic, they had to accept greater risk of being sick or even death, with very minimal increase in compensation,\u201d Domini S. Velasquez, chief economist at China Banking Corp., said in an e-mail.
\nThe Health department has said it was looking at paying health workers and their families more than P300 million in sickness and death compensation claims.
\nMr. Mendoza noted how healthcare workers had to deal with the lack of transportation, accommodation and inadequate hazard pay during the pandemic.
\nMeanwhile, demand for their kind has increased in developed nations that have opened up opportunities for employment. This includes countries with advanced healthcare industries such as the US, UK, Germany and Japan.
\n\u201cAs this exodus continues, the Philippines is at the losing end because our investments in their human resource development is benefiting other economies,\u201d John Paolo R. Rivera, an economist at the Asian Institute of Management said in a Viber message.
\n\u201cThe producer of healthcare professionals is the one experiencing the constraint when we should have the bargaining power.\u201d
\n\u2018FORCED TO LEAVE\u2019
\nSome Filipino doctors might also opt to work as nurses overseas just to be able to leave the country, Ms. Velasquez said.
Faustino Jerome G. Babate, executive director at the Filipino Nursing Diaspora Network, said some of these workers, especially nurses deployed to the Middle East, have had to deal with recruitment issues including salaries below contract.
\n\u201cRecruiting countries should commit financially to the Philippines to support the development of the local health system, including the improvement of working conditions and personnel management,\u201d he said in a LinkedIn message.
\nHealth workers make up a significant part of the Filipino diaspora that sends money to their families back home. These inflows fuel household spending, which accounts for about three-fourths of the Philippine economy.
\nCash remittances sent home by Filipinos overseas hit a record $31.42 billion in 2021, a 5.1% yearly growth, according to the central bank.
\nThe US, where many Filipinos work in healthcare, has always been the biggest source of inflows.
\nOne of seven Filipinos was looking to emigrate in the next five years, according to a 2018 survey by the local statistics agency.
\n\u201cHealth workers would be willing to stay here to be with their families if only they are valued as much as in other countries,\u201d Mr. Rivera said. \u201cThis is a battle of where they are valued most.\u201d
\nMs. Velasquez said newly installed President Ferdinand R. Marcos, Jr.\u2019s proposal to end contractualization, though lacking in details, could encourage more health workers to stay. His predecessor, Rodrigo R. Duterte had promised the same but this did not materialize.
\n\u201cAny improvements in domestic conditions should not prevent any Filipino from leaving the country if they choose to,\u201d she said. \u201cBut voluntarily choosing to leave should be distinguished from being forced to leave because of economic circumstances at home.\u201d
\nMr. Salazar, the medical technologist, is set to eventually become a naturalized American citizen and is trying to build his career there.
\n\u201cI would like to go back to my home country every now and then not to work anymore, but to give back to the community,\u201d he said.
\nOn the other hand Ms. Donguines said the pandemic had made her realize that life is short and she would rather spend it near her loved ones.
\nAbout a fourth of nurses at the hospital she works in have left for overseas work since coronavius infections eased, she said.
\n\u201cThe younger ones are leaving,\u201d she said. \u201cWhat will happen to Filipinos with already poor healthcare services if older people like me leave as well?\u201d \u2014 LWTN
\n", "content_text": "VINCENT GIAN N. SALAZAR, 26, fulfilled his lifelong dream by moving to the US as a healthcare practitioner in 2021, when the Philippines was reeling from the sting of a global coronavirus pandemic.\nThe California-based Filipino now earns 10 times what he used to get as a medical technologist at a hospital in the Philippine capital.\n\u201cI continued my medical profession in another country to advance my career, which is difficult to do in our country,\u201d he said in a Facebook Messenger chat.\nThe pandemic that has killed more than 60,000 Filipinos and 6.4 million people worldwide has tested the limits of Filipino health workers toiling at local hospitals. Many of them have since left the country to pursue greener pastures overseas.\nSome nurses in private hospitals in the provinces get as low as about P5,000 a month, said Robert Mendoza, president of the Alliance of Healthcare Workers.\nIn 2020, the Philippine government raised the starting salary of nurses in state-owned hospitals to about P32,000 ($582) from P22,000. But some of the higher-ranking nurses got demoted and had to settle for their old rates.\u00a0 \u00a0\nCristy V. Donguines is one of the country\u2019s health workers who had been through the worst of the pandemic.\nFor many months, she depended on the goodwill of their village patrol that took her to a meeting place in Bulacan province northwest of Manila so she could share a ride with a co-worker for a nearly two-hour journey to reach Jose Reyes Memorial Medical Center in downtown Manila.\n\u201cIf the government can afford to double the salary of policemen, it should also be able to do the same for frontline health workers,\u201d she said by telephone.\nLocal health workers had to sacrifice a lot especially every time a surge in coronavirus infections took place, many of them having to isolate themselves after being exposed to the virus. Transmitting the virus to their loved ones was a constant fear.\n\u201cMore importantly, at the height of the pandemic, they had to accept greater risk of being sick or even death, with very minimal increase in compensation,\u201d Domini S. Velasquez, chief economist at China Banking Corp., said in an e-mail.\nThe Health department has said it was looking at paying health workers and their families more than P300 million in sickness and death compensation claims.\nMr. Mendoza noted how healthcare workers had to deal with the lack of transportation, accommodation and inadequate hazard pay during the pandemic.\nMeanwhile, demand for their kind has increased in developed nations that have opened up opportunities for employment. This includes countries with advanced healthcare industries such as the US, UK, Germany and Japan.\n\u201cAs this exodus continues, the Philippines is at the losing end because our investments in their human resource development is benefiting other economies,\u201d John Paolo R. Rivera, an economist at the Asian Institute of Management said in a Viber message.\n\u201cThe producer of healthcare professionals is the one experiencing the constraint when we should have the bargaining power.\u201d\n\u2018FORCED TO LEAVE\u2019\nSome Filipino doctors might also opt to work as nurses overseas just to be able to leave the country, Ms. Velasquez said.\nFaustino Jerome G. Babate, executive director at the Filipino Nursing Diaspora Network, said some of these workers, especially nurses deployed to the Middle East, have had to deal with recruitment issues including salaries below contract.\n\u201cRecruiting countries should commit financially to the Philippines to support the development of the local health system, including the improvement of working conditions and personnel management,\u201d he said in a LinkedIn message.\nHealth workers make up a significant part of the Filipino diaspora that sends money to their families back home. These inflows fuel household spending, which accounts for about three-fourths of the Philippine economy.\nCash remittances sent home by Filipinos overseas hit a record $31.42 billion in 2021, a 5.1% yearly growth, according to the central bank.\nThe US, where many Filipinos work in healthcare, has always been the biggest source of inflows.\nOne of seven Filipinos was looking to emigrate in the next five years, according to a 2018 survey by the local statistics agency.\n\u201cHealth workers would be willing to stay here to be with their families if only they are valued as much as in other countries,\u201d Mr. Rivera said. \u201cThis is a battle of where they are valued most.\u201d\nMs. Velasquez said newly installed President Ferdinand R. Marcos, Jr.\u2019s proposal to end contractualization, though lacking in details, could encourage more health workers to stay. His predecessor, Rodrigo R. Duterte had promised the same but this did not materialize.\n\u201cAny improvements in domestic conditions should not prevent any Filipino from leaving the country if they choose to,\u201d she said. \u201cBut voluntarily choosing to leave should be distinguished from being forced to leave because of economic circumstances at home.\u201d\nMr. Salazar, the medical technologist, is set to eventually become a naturalized American citizen and is trying to build his career there.\n\u201cI would like to go back to my home country every now and then not to work anymore, but to give back to the community,\u201d he said.\nOn the other hand Ms. Donguines said the pandemic had made her realize that life is short and she would rather spend it near her loved ones.\nAbout a fourth of nurses at the hospital she works in have left for overseas work since coronavius infections eased, she said.\n\u201cThe younger ones are leaving,\u201d she said. \u201cWhat will happen to Filipinos with already poor healthcare services if older people like me leave as well?\u201d \u2014 LWTN", "date_published": "2022-07-01T00:32:36+08:00", "date_modified": "2022-06-30T23:41:48+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/08/health-worker-patient.jpg", "tags": [ "Featured2", "Luz Wendy T. Noble", "Editors' Picks", "One News", "大象传媒" ], "summary": "VINCENT GIAN N. SALAZAR, 26, fulfilled his lifelong dream by moving to the US as a healthcare practitioner in 2021, when the Philippines was reeling from the sting of a global coronavirus pandemic." }, { "id": "/?p=449729", "url": "/top-stories/2022/05/20/449729/bsp-hikes-rates-for-1st-time-since-2018/", "title": "BSP hikes rates for 1st time since 2018", "content_html": "![\"\"](\"/wp-content/uploads/2022/03/vegetables-public-market.jpg\")
THE Bangko Sentral ng Pilipinas (BSP) raised its key interest rate for the first time since 2018 to tame rising inflation.
\nThe Monetary Board on Thursday increased the benchmark rate by 25 basis points (bps) to 2.25%, as expected by eight out of 17 analysts in a 大象传媒 poll last week.
\nInterest rates on the overnight deposit and lending facilities were also hiked by 25 bps to 1.75% and 2.75%, respectively.
\n\u201cThe Monetary Board believes that a timely increase in the BSP\u2019s policy interest rate will help arrest further second-round effects and temper the buildup in inflation expectations,\u201d BSP Governor Benjamin E. Diokno said at a media briefing.
\n\u201cPersistent inflationary pressures point to the need for prompt monetary action to anchor inflation expectations.\u201d
\nInflation climbed to 4.9% in April, the highest in more than three years, as oil and commodity prices soared amid the Russia-Ukraine war and supply chain disruptions.
\n\u201cThe Monetary Board also observed the emergence of second-round effects, including the higher-than-expected adjustment in minimum wages in some regions. Inflation expectations have likewise risen, highlighting the risk posed by sustained pressures on future wage and price outcomes,\u201d he said.\u00a0
\nMr. Diokno said the strong rebound in economic activity and jobs market in the first quarter \u201cprovide scope for the BSP to continue rolling back its pandemic-induced interventions.\u201d
\nHe said the National Government will fully settle on Friday the P300-billion zero-interest loan it secured from the BSP, ahead of the original maturity date on June 11.
\nThe Monetary Board will also reset the BSP\u2019s bond-buying window into a regular liquidity facility that will also ensure the sustainability of its balance sheet. Mr. Diokno said the BSP held around 40% of government bonds at the height of the pandemic, but has been significantly reduced to around 2-3%.
\n\u201cAs the economic recovery continues to gain traction, the BSP shall proceed with its plans for the continued gradual withdrawal of its extraordinary liquidity interventions and the start of the normalization of its monetary policy settings,\u201d he said.
\nThe BSP chief said the pace and timing of further monetary policy action will be \u201cguided by data outcomes.\u201d
\nThe start of the BSP\u2019s tightening cycle came a week after the release of data showing gross domestic product (GDP) expanded by a better-than-expected 8.3% in the first quarter.
\nRISING INFLATION
\nAt the same time, the BSP upwardly revised its average inflation forecast for 2022 to 4.6% from the previous forecast of 4.3%, exceeding the 2%-4% target band. For 2023, the BSP\u2019s inflation forecast was hiked to 3.9% from 3.6% previously.
BSP Department of Economic Research Managing Director Zeno Ronald R. Abenoja said the central bank\u2019s new inflation projections factored in higher oil and non-oil prices caused by the Russia-Ukraine war.
\nThe BSP now expects the price of Dubai crude to average about $100 per barrel this year from the $83-per-barrel projection given earlier.
\nMr. Abenoja said the faster-than-expected growth, quicker inflation, the increase in the minimum wage in Metro Manila, and the impact of the policy tightening by the US Federal Reserve were also considered in the new inflation estimates.
\n\u201cInflation could likely exceed 5% in the next few months,\u201d Mr. Diokno said, with the peak expected within the second quarter.
\n\u201cHowever, barring any further adverse shocks, we also expect inflation to slow down heading closer eventually towards 2023 and revert to within the target band by the middle of that year as the effects of the global commodity price shocks dissipate,\u201d he added.
\nBank of the Philippine Islands Lead Economist Emilio S. Neri, Jr. said he now expects the BSP to raise rates by at least 100 bps this year, from 75 bps previously.
\n\u201cDespite this, we believe the economy has enough cushion in case the BSP decides to hike its policy rate further. Even with a 100-bp rate hike this year, the policy rate will still be below historical and pre-pandemic levels. Furthermore, the impact of rate hikes is usually gradual and the economy has the capacity to absorb slightly higher interest rates especially now that demand is almost back to pre-pandemic level,\u201d he said in a note.
\nHowever, the more significant risks to the economic outlook are inflation and the peso depreciation against the US dollar, Mr. Neri said.
\nFor MUFG Bank analyst Sophia Ng, inflation may peak at 5.5% in June as inflation risks become more broad-based. She said the BSP may now be more \u201caggressive\u201d in carrying out its exit strategy, noting how officials have become more hawkish in their statement.
\n\u201cA total of 100 bps hikes in 2022 will still not be able to fully unwind the cumulative 200 bps cut done in 2020,\u201d Ms. Ng said in a note.
\nThe BSP will have its next policy review on June 23. \u2014 Luz Wendy T. Noble
\n", "content_text": "A vendor arranges vegetables at a public market in Manila. \u2014 PHILIPPINE STAR/ RUSSEL A. PALMA\nTHE Bangko Sentral ng Pilipinas (BSP) raised its key interest rate for the first time since 2018 to tame rising inflation.\nThe Monetary Board on Thursday increased the benchmark rate by 25 basis points (bps) to 2.25%, as expected by eight out of 17 analysts in a 大象传媒 poll last week.\nInterest rates on the overnight deposit and lending facilities were also hiked by 25 bps to 1.75% and 2.75%, respectively.\n\u201cThe Monetary Board believes that a timely increase in the BSP\u2019s policy interest rate will help arrest further second-round effects and temper the buildup in inflation expectations,\u201d BSP Governor Benjamin E. Diokno said at a media briefing.\n\u201cPersistent inflationary pressures point to the need for prompt monetary action to anchor inflation expectations.\u201d\nInflation climbed to 4.9% in April, the highest in more than three years, as oil and commodity prices soared amid the Russia-Ukraine war and supply chain disruptions.\n\u201cThe Monetary Board also observed the emergence of second-round effects, including the higher-than-expected adjustment in minimum wages in some regions. Inflation expectations have likewise risen, highlighting the risk posed by sustained pressures on future wage and price outcomes,\u201d he said.\u00a0\nMr. Diokno said the strong rebound in economic activity and jobs market in the first quarter \u201cprovide scope for the BSP to continue rolling back its pandemic-induced interventions.\u201d\nHe said the National Government will fully settle on Friday the P300-billion zero-interest loan it secured from the BSP, ahead of the original maturity date on June 11.\nThe Monetary Board will also reset the BSP\u2019s bond-buying window into a regular liquidity facility that will also ensure the sustainability of its balance sheet. Mr. Diokno said the BSP held around 40% of government bonds at the height of the pandemic, but has been significantly reduced to around 2-3%. \n\u201cAs the economic recovery continues to gain traction, the BSP shall proceed with its plans for the continued gradual withdrawal of its extraordinary liquidity interventions and the start of the normalization of its monetary policy settings,\u201d he said.\nThe BSP chief said the pace and timing of further monetary policy action will be \u201cguided by data outcomes.\u201d\nThe start of the BSP\u2019s tightening cycle came a week after the release of data showing gross domestic product (GDP) expanded by a better-than-expected 8.3% in the first quarter.\nRISING INFLATION\nAt the same time, the BSP upwardly revised its average inflation forecast for 2022 to 4.6% from the previous forecast of 4.3%, exceeding the 2%-4% target band. For 2023, the BSP\u2019s inflation forecast was hiked to 3.9% from 3.6% previously.\nBSP Department of Economic Research Managing Director Zeno Ronald R. Abenoja said the central bank\u2019s new inflation projections factored in higher oil and non-oil prices caused by the Russia-Ukraine war.\nThe BSP now expects the price of Dubai crude to average about $100 per barrel this year from the $83-per-barrel projection given earlier.\nMr. Abenoja said the faster-than-expected growth, quicker inflation, the increase in the minimum wage in Metro Manila, and the impact of the policy tightening by the US Federal Reserve were also considered in the new inflation estimates.\n\u201cInflation could likely exceed 5% in the next few months,\u201d Mr. Diokno said, with the peak expected within the second quarter. \n\u201cHowever, barring any further adverse shocks, we also expect inflation to slow down heading closer eventually towards 2023 and revert to within the target band by the middle of that year as the effects of the global commodity price shocks dissipate,\u201d he added.\nBank of the Philippine Islands Lead Economist Emilio S. Neri, Jr. said he now expects the BSP to raise rates by at least 100 bps this year, from 75 bps previously. \n\u201cDespite this, we believe the economy has enough cushion in case the BSP decides to hike its policy rate further. Even with a 100-bp rate hike this year, the policy rate will still be below historical and pre-pandemic levels. Furthermore, the impact of rate hikes is usually gradual and the economy has the capacity to absorb slightly higher interest rates especially now that demand is almost back to pre-pandemic level,\u201d he said in a note.\nHowever, the more significant risks to the economic outlook are inflation and the peso depreciation against the US dollar, Mr. Neri said.\nFor MUFG Bank analyst Sophia Ng, inflation may peak at 5.5% in June as inflation risks become more broad-based. She said the BSP may now be more \u201caggressive\u201d in carrying out its exit strategy, noting how officials have become more hawkish in their statement.\n\u201cA total of 100 bps hikes in 2022 will still not be able to fully unwind the cumulative 200 bps cut done in 2020,\u201d Ms. Ng said in a note.\nThe BSP will have its next policy review on June 23. \u2014 Luz Wendy T. Noble", "date_published": "2022-05-20T00:34:07+08:00", "date_modified": "2022-05-19T19:57:20+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2022/03/vegetables-public-market.jpg", "tags": [ "Luz Wendy T. Noble", "Editors' Picks", "大象传媒" ], "summary": "THE Bangko Sentral ng Pilipinas (BSP) raised its key interest rate for the first time since 2018 to tame rising inflation." }, { "id": "/?p=449728", "url": "/top-stories/2022/05/20/449728/npl-ratio-eases-to-three-month-low/", "title": "NPL ratio eases to three-month low", "content_html": "SOURED LOANS held by Philippine banks declined in March, bringing the nonperforming loan (NPL) ratio to its lowest in three months amid the further reopening of the economy.
\nData released by the Bangko Sentral ng Pilipinas (BSP) on Thursday showed the banking industry\u2019s gross NPL ratio slipped to 4.08% in March from 4.21% a year ago. It is also lower than the 4.24% NPL ratio seen in February.
\nThe March NPL ratio is the lowest since the 4.1% logged in December.
\nBad loans rose 2.7% to P460.458 billion in March from P448.44 billion a year ago. However, it declined 2.6% from the P472.664 billion in February.
\nThe asset quality of Philippine banks improved amid the expansion in banks\u2019 outstanding loans, Asian Institute of Management economist John Paolo R. Rivera said.
\n\u201cThis [decline in NPL ratio] is due to increased economic and business activities that allow for more demand for loans coupled by a relatively more stable income flows given a more sustained economic reopening,\u201d Mr. Rivera said in a Viber message.
\nThe government placed Metro Manila and some provinces under the most lenient alert level in March as the number of coronavirus disease 2019 (COVID-19) infections plunged.
\nIn March, outstanding loans by big banks expanded by 8.9%, the quickest rise since the 9.6% in June 2020.
\nAs NPLs declined, the lenders\u2019 gross loan portfolio continued to expand by 5.8% to P11.28 trillion in March from P10.66 trillion a year ago. It also edged up 1.2% from the P11.15 trillion in February.
\nMeanwhile, past due loans fell 4.4% to P544.593 billion in March from P569.639 billion a year ago. This brought the ratio to 4.83% from 5.34% a year ago.
\nOn the other hand, restructured loans climbed 46.7% to P341.771 billion from P232.925 billion a year ago. These borrowings accounted for 3.03% of banks\u2019 loan portfolio from 2.18% previously.
\nEven as asset quality improved, the loan loss reserves grew 9% to P406.975 billion from P373.281 billion last year. This is equivalent to 3.61% of lenders\u2019 loan portfolio, inching up from 3.5% a year ago.
\nThe industry\u2019s NPL coverage ratio improved to 88.38% from 83.24% a year ago.
\nMr. Rivera said the incoming administration should make sure there are no disruptions to economic activity to allow borrowers to recover.
\n\u201c[The] new administration must ensure that the economy remains to be uninterrupted so that jobs are generated and secured,\u201d he said.
\nThe jobless rate slowed to 5.8% in March from 6.4% in February, based on data from the Philippine Statistics Authority. This is equivalent to 2.875 million Filipinos from 3.126 million a month earlier.
\nHowever, the underemployment rate worsened to 15.8% from 14% in February. This translated to 7.422 million Filipinos that are still looking for an additional job or longer hours, up from the 6.382 million in February. \u2014 Luz Wendy T. Noble
\n", "content_text": "SOURED LOANS held by Philippine banks declined in March, bringing the nonperforming loan (NPL) ratio to its lowest in three months amid the further reopening of the economy.\nData released by the Bangko Sentral ng Pilipinas (BSP) on Thursday showed the banking industry\u2019s gross NPL ratio slipped to 4.08% in March from 4.21% a year ago. It is also lower than the 4.24% NPL ratio seen in February.\nThe March NPL ratio is the lowest since the 4.1% logged in December.\nBad loans rose 2.7% to P460.458 billion in March from P448.44 billion a year ago. However, it declined 2.6% from the P472.664 billion in February.\nThe asset quality of Philippine banks improved amid the expansion in banks\u2019 outstanding loans, Asian Institute of Management economist John Paolo R. Rivera said.\n\u201cThis [decline in NPL ratio] is due to increased economic and business activities that allow for more demand for loans coupled by a relatively more stable income flows given a more sustained economic reopening,\u201d Mr. Rivera said in a Viber message.\nThe government placed Metro Manila and some provinces under the most lenient alert level in March as the number of coronavirus disease 2019 (COVID-19) infections plunged.\nIn March, outstanding loans by big banks expanded by 8.9%, the quickest rise since the 9.6% in June 2020.\nAs NPLs declined, the lenders\u2019 gross loan portfolio continued to expand by 5.8% to P11.28 trillion in March from P10.66 trillion a year ago. It also edged up 1.2% from the P11.15 trillion in February. \nMeanwhile, past due loans fell 4.4% to P544.593 billion in March from P569.639 billion a year ago. This brought the ratio to 4.83% from 5.34% a year ago.\nOn the other hand, restructured loans climbed 46.7% to P341.771 billion from P232.925 billion a year ago. These borrowings accounted for 3.03% of banks\u2019 loan portfolio from 2.18% previously.\nEven as asset quality improved, the loan loss reserves grew 9% to P406.975 billion from P373.281 billion last year. This is equivalent to 3.61% of lenders\u2019 loan portfolio, inching up from 3.5% a year ago.\nThe industry\u2019s NPL coverage ratio improved to 88.38% from 83.24% a year ago.\nMr. Rivera said the incoming administration should make sure there are no disruptions to economic activity to allow borrowers to recover.\n\u201c[The] new administration must ensure that the economy remains to be uninterrupted so that jobs are generated and secured,\u201d he said.\nThe jobless rate slowed to 5.8% in March from 6.4% in February, based on data from the Philippine Statistics Authority. This is equivalent to 2.875 million Filipinos from 3.126 million a month earlier.\nHowever, the underemployment rate worsened to 15.8% from 14% in February. This translated to 7.422 million Filipinos that are still looking for an additional job or longer hours, up from the 6.382 million in February. \u2014 Luz Wendy T. Noble", "date_published": "2022-05-20T00:33:07+08:00", "date_modified": "2022-05-19T19:56:43+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/08/peso-currency-720p-1.jpg", "tags": [ "Featured2", "Luz Wendy T. Noble", "Editors' Picks", "大象传媒" ], "summary": "SOURED LOANS held by Philippine banks declined in March, bringing the nonperforming loan (NPL) ratio to its lowest in three months amid the further reopening of the economy." }, { "id": "/?p=449727", "url": "/top-stories/2022/05/20/449727/credit-raters-awaiting-incoming-administrations-fiscal-consolidation-plan/", "title": "Credit raters awaiting incoming administration\u2019s fiscal consolidation plan", "content_html": "![\"\"](\"/wp-content/uploads/2022/05/Mandaluyong-skyline-buildings.jpg\")
By Luz Wendy T. Noble, Reporter
\nand Tobias Jared Tomas
CREDIT RATING agencies will keep a close eye on how the incoming Marcos administration will manage the country\u2019s mounting debt in assessing the Philippines\u2019 sovereign rating.
\nMoody\u2019s Investors Service is also concerned over debt affordability as it reflects a sovereign\u2019s fiscal flexibility, said Christian de Guzman, senior vice-president at Moody\u2019s sovereign risk group.
\nDebt affordability is the ratio of annual interest payments required to maintain a government\u2019s debt to its annual tax revenues.
\n\u201cIndeed, while there has been a large increase in government debt that has in essence reversed the progress in debt reduction that was made in the decade prior to the pandemic, we have not seen a similarly large deterioration in debt affordability for the Philippines,\u201d Mr. De Guzman said in an e-mail.
\nThe National Government\u2019s outstanding debt rose to a record-high P12.68 trillion as of end-March, according to the Bureau of the Treasury (BTr).
\n\u201cFor comparison, the last time the Philippine government had seen debt levels similar to that today, which was in the early to mid-2000s, the interest payments to revenue ratio was several magnitudes worse than what we are seeing today,\u201d Mr. De Guzman said.
\nThe relatively stable interest rates as well as continued tax reforms have helped improved debt affordability for the Philippines, he said.
\nMoody\u2019s last affirmed its \u201cBaa2\u201d credit rating with a \u201cstable\u201d outlook for the Philippines in July 2020.
\n\u201cAs factors that would prompt a downgrade of the Philippines\u2019 sovereign rating, we have previously cited a greater deterioration in fiscal and government debt metrics relative to peers or an erosion of the country\u2019s external payments position that threatens liquidity conditions,\u201d Mr. De Guzman said.
\nAny reversal of economic reforms, \u201csubstantial deterioration in institutions and governance strength, with signs of erosion in the quality of legislative and executive institutions,\u201d would also be negative, he added.
\nThe National Government\u2019s debt-to-gross domestic product (GDP) ratio hit 63.5% as of end-March, the highest in 12 years. It also exceeded the 60% threshold considered manageable by multilateral lenders for emerging economies.
\n\u201cUltimately, the rating trajectory will be informed by the incoming administration\u2019s ability to stabilize and eventually reverse the deterioration in debt levels over the medium term,\u201d Mr. De Guzman said.
\nMeanwhile, S&P Global Ratings Director YeeFarn Phua said they will keep a close eye on any sustained deterioration in the Philippine National Government\u2019s fiscal and debt positions that will exceed their projections, as this will put downward risk on ratings.
\n\u201cThough the current net debt to GDP is still well under 60%, we note that the quicker pace of debt increase is eroding fiscal buffers,\u201d Mr. Phua said.
\nIn the case of the Philippines, net debt takes into account the country\u2019s liquid assets like social security assets and deposits at the central banks, he said. It also excludes government securities held by the national bond sinking fund.
\nFor now, Mr. Phua said S&P\u2019s \u201cstable\u201d outlook on the country\u2019s \u201cBBB+\u201d rating assumes that the fiscal performance will improve on the back of the economy\u2019s recovery from the pandemic.
\nIt will be crucial for the incoming Marcos administration to implement measures that will bring down the budget deficit and continue economic reforms to avoid a possible downgrade of the country\u2019s investment grade rating, analysts said.
\nPantheon Macroeconomics Chief Emerging Asia Economist Miguel Chanco said rising debt-to-GDP will not be the lone determinant for the possibility of a ratings downgrade.
\n\u201cWhat will matter more, though, is how quickly the new government can consolidate its budget deficit in the next one to two years, as the Philippines suffered one of the biggest budget blowouts in emerging Asia. Failure to make any progress could possibly result in more of the big three ratings agencies changing their outlook to \u2018negative,\u2019 from \u2018stable,\u2019\u201d Mr. Chanco said in an e-mail.
\nIn 2021, the budget deficit rose by 21.87% to P1.7 trillion, equivalent to 8.61% of GDP. For this year, the government has set a budget deficit ceiling of 7.7% of the economic output.
\nTackling the growing national debt moving forward should be a priority for the incoming administration of Ferdinand R. Marcos, Jr., UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said.
\n\u201cCredit raters do have a long horizon before actually dropping any of their ratings except when they think that the situation in a particular economy has quickly deteriorated,\u201d Mr. Asuncion said.
\nSince his landslide win in the May 9 presidential elections, Mr. Marcos has yet to announce his economic team or provide details on his economic plan.
\nMeanwhile, ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said Fitch Ratings had noted concerns over the Philippines\u2019 ability to lower its debt over time.
\n\u201cAlthough we believe ratings agencies will give the new administration some leeway before potential credit rating action, we believe the longer our debt ratios stay above key thresholds, the more susceptible the Philippines will be to potential downgrades,\u201d Mr. Mapa said in an e-mail.
\nIn February, the debt watcher has maintained the \u201cnegative\u201d outlook on the country\u2019s \u201cBBB+\u201d rating, which opens up the possibility of a ratings downgrade in the next 12 to 18 months.
\nThe country\u2019s investment grade rating allows the government access to lower borrowing rates. It could also boost investor sentiment as it reflects the capacity of a government to pay back its debt.
\nFinance Secretary Carlos G. Dominguez III in April said the Philippine economy needs to expand above 6% annually in the next five to six years to reduce the country\u2019s debt that ballooned during the pandemic.
\n", "content_text": "A view of residential condominium buildings in Mandaluyong City, Metro Manila, Philippines, Aug. 22, 2016. \u2014 REUTERS\nBy Luz Wendy T. Noble, Reporter\nand Tobias Jared Tomas\nCREDIT RATING agencies will keep a close eye on how the incoming Marcos administration will manage the country\u2019s mounting debt in assessing the Philippines\u2019 sovereign rating.\nMoody\u2019s Investors Service is also concerned over debt affordability as it reflects a sovereign\u2019s fiscal flexibility, said Christian de Guzman, senior vice-president at Moody\u2019s sovereign risk group.\nDebt affordability is the ratio of annual interest payments required to maintain a government\u2019s debt to its annual tax revenues. \n\u201cIndeed, while there has been a large increase in government debt that has in essence reversed the progress in debt reduction that was made in the decade prior to the pandemic, we have not seen a similarly large deterioration in debt affordability for the Philippines,\u201d Mr. De Guzman said in an e-mail.\nThe National Government\u2019s outstanding debt rose to a record-high P12.68 trillion as of end-March, according to the Bureau of the Treasury (BTr).\n\u201cFor comparison, the last time the Philippine government had seen debt levels similar to that today, which was in the early to mid-2000s, the interest payments to revenue ratio was several magnitudes worse than what we are seeing today,\u201d Mr. De Guzman said.\nThe relatively stable interest rates as well as continued tax reforms have helped improved debt affordability for the Philippines, he said.\nMoody\u2019s last affirmed its \u201cBaa2\u201d credit rating with a \u201cstable\u201d outlook for the Philippines in July 2020.\n\u201cAs factors that would prompt a downgrade of the Philippines\u2019 sovereign rating, we have previously cited a greater deterioration in fiscal and government debt metrics relative to peers or an erosion of the country\u2019s external payments position that threatens liquidity conditions,\u201d Mr. De Guzman said.\nAny reversal of economic reforms, \u201csubstantial deterioration in institutions and governance strength, with signs of erosion in the quality of legislative and executive institutions,\u201d would also be negative, he added.\nThe National Government\u2019s debt-to-gross domestic product (GDP) ratio hit 63.5% as of end-March, the highest in 12 years. It also exceeded the 60% threshold considered manageable by multilateral lenders for emerging economies.\n\u201cUltimately, the rating trajectory will be informed by the incoming administration\u2019s ability to stabilize and eventually reverse the deterioration in debt levels over the medium term,\u201d Mr. De Guzman said.\nMeanwhile, S&P Global Ratings Director YeeFarn Phua said they will keep a close eye on any sustained deterioration in the Philippine National Government\u2019s fiscal and debt positions that will exceed their projections, as this will put downward risk on ratings.\n\u201cThough the current net debt to GDP is still well under 60%, we note that the quicker pace of debt increase is eroding fiscal buffers,\u201d Mr. Phua said.\nIn the case of the Philippines, net debt takes into account the country\u2019s liquid assets like social security assets and deposits at the central banks, he said. It also excludes government securities held by the national bond sinking fund. \nFor now, Mr. Phua said S&P\u2019s \u201cstable\u201d outlook on the country\u2019s \u201cBBB+\u201d rating assumes that the fiscal performance will improve on the back of the economy\u2019s recovery from the pandemic.\nIt will be crucial for the incoming Marcos administration to implement measures that will bring down the budget deficit and continue economic reforms to avoid a possible downgrade of the country\u2019s investment grade rating, analysts said.\nPantheon Macroeconomics Chief Emerging Asia Economist Miguel Chanco said rising debt-to-GDP will not be the lone determinant for the possibility of a ratings downgrade.\n\u201cWhat will matter more, though, is how quickly the new government can consolidate its budget deficit in the next one to two years, as the Philippines suffered one of the biggest budget blowouts in emerging Asia. Failure to make any progress could possibly result in more of the big three ratings agencies changing their outlook to \u2018negative,\u2019 from \u2018stable,\u2019\u201d Mr. Chanco said in an e-mail.\nIn 2021, the budget deficit rose by 21.87% to P1.7 trillion, equivalent to 8.61% of GDP. For this year, the government has set a budget deficit ceiling of 7.7% of the economic output.\nTackling the growing national debt moving forward should be a priority for the incoming administration of Ferdinand R. Marcos, Jr., UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said.\n\u201cCredit raters do have a long horizon before actually dropping any of their ratings except when they think that the situation in a particular economy has quickly deteriorated,\u201d Mr. Asuncion said.\nSince his landslide win in the May 9 presidential elections, Mr. Marcos has yet to announce his economic team or provide details on his economic plan.\nMeanwhile, ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said Fitch Ratings had noted concerns over the Philippines\u2019 ability to lower its debt over time.\n\u201cAlthough we believe ratings agencies will give the new administration some leeway before potential credit rating action, we believe the longer our debt ratios stay above key thresholds, the more susceptible the Philippines will be to potential downgrades,\u201d Mr. Mapa said in an e-mail.\nIn February, the debt watcher has maintained the \u201cnegative\u201d outlook on the country\u2019s \u201cBBB+\u201d rating, which opens up the possibility of a ratings downgrade in the next 12 to 18 months.\nThe country\u2019s investment grade rating allows the government access to lower borrowing rates. It could also boost investor sentiment as it reflects the capacity of a government to pay back its debt.\nFinance Secretary Carlos G. Dominguez III in April said the Philippine economy needs to expand above 6% annually in the next five to six years to reduce the country\u2019s debt that ballooned during the pandemic.", "date_published": "2022-05-20T00:32:07+08:00", "date_modified": "2022-05-19T19:55:28+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2022/05/Mandaluyong-skyline-buildings.jpg", "tags": [ "Featured2", "Luz Wendy T. Noble", "Tobias Jared Tomas", "Editors' Picks", "大象传媒" ], "summary": "CREDIT RATING agencies will keep a close eye on how the incoming Marcos administration will manage the country\u2019s mounting debt in assessing the Philippines\u2019 sovereign rating." }, { "id": "/?p=449689", "url": "/banking-finance/2022/05/20/449689/bsp-proposes-guidelines-for-sustainable-investing/", "title": "BSP proposes guidelines for sustainable investing", "content_html": "THE BANGKO SENTRAL ng Pilipinas (BSP) is proposing guidelines for banks\u2019 integration of sustainability principles in their investment activities.
\n\u201cThese guidelines are being issued to set expectations on the prudent conduct of investment activities and the minimum practices that a BSP-supervised financial institutions should establish for the management and control of risks associated with investments,\u201d according to the draft circular posted by the central bank on Thursday.
\nUnder the proposed rules, the central bank recommended strategies to help banks assess the sustainability of their prospective investments.
\nAmong these methods is integration, or for banks to explicitly include environmental and social (E&S) risks in their investment analysis for better risk management and improving returns.
\nUnder the screening strategy, banks may actively avoid investing in securities that belong to companies they believe \u201ccounter moral values\u2026 or standards and norms.\u201d This means not investing in firms that are part of gambling or military weapons industries or entities that don\u2019t respect human rights and environmental protection.
\nConversely, via screening, banks may prefer companies that are known for relatively better E&S risks compared with their peers. By screening, lenders may also opt for \u201cimpact investing\u201d with the goal to \u201cgenerate and measure social and environmental benefits alongside a financial return.\u201d
\nThe BSP will also allow control mechanisms to help financial institutions prevent falling into the \u201cgreenwashing\u201d trap when investing.
\n\u201cGreenwashing refers to the deceptive marketing used to persuade the public that an organization\u2019s products, aims, and policies are environmentally friendly,\u201d the BSP said.
\nUnder the proposed guidelines, a bank\u2019s board of directors is responsible for ensuring that sustainability principles are integrated into their investment activities.
\nStakeholders are given until June 1 to give their feedback on the proposed circular.
\nThe central bank launched the second phase of its sustainable finance framework in November that directed banks to monitor environmental and social risks in their credit exposures and business operations. \u2014 Luz Wendy T. Noble
\n", "content_text": "THE BANGKO SENTRAL ng Pilipinas (BSP) is proposing guidelines for banks\u2019 integration of sustainability principles in their investment activities.\n\u201cThese guidelines are being issued to set expectations on the prudent conduct of investment activities and the minimum practices that a BSP-supervised financial institutions should establish for the management and control of risks associated with investments,\u201d according to the draft circular posted by the central bank on Thursday.\nUnder the proposed rules, the central bank recommended strategies to help banks assess the sustainability of their prospective investments.\nAmong these methods is integration, or for banks to explicitly include environmental and social (E&S) risks in their investment analysis for better risk management and improving returns.\nUnder the screening strategy, banks may actively avoid investing in securities that belong to companies they believe \u201ccounter moral values\u2026 or standards and norms.\u201d This means not investing in firms that are part of gambling or military weapons industries or entities that don\u2019t respect human rights and environmental protection.\nConversely, via screening, banks may prefer companies that are known for relatively better E&S risks compared with their peers. By screening, lenders may also opt for \u201cimpact investing\u201d with the goal to \u201cgenerate and measure social and environmental benefits alongside a financial return.\u201d\nThe BSP will also allow control mechanisms to help financial institutions prevent falling into the \u201cgreenwashing\u201d trap when investing.\n\u201cGreenwashing refers to the deceptive marketing used to persuade the public that an organization\u2019s products, aims, and policies are environmentally friendly,\u201d the BSP said.\nUnder the proposed guidelines, a bank\u2019s board of directors is responsible for ensuring that sustainability principles are integrated into their investment activities.\nStakeholders are given until June 1 to give their feedback on the proposed circular.\nThe central bank launched the second phase of its sustainable finance framework in November that directed banks to monitor environmental and social risks in their credit exposures and business operations. \u2014 Luz Wendy T. Noble", "date_published": "2022-05-20T00:02:02+08:00", "date_modified": "2022-05-19T18:22:33+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/10/BSP-3.jpg", "tags": [ "Featured2", "Luz Wendy T. Noble", "Banking & Finance", "Editors' Picks" ], "summary": "THE BANGKO SENTRAL ng Pilipinas (BSP) is proposing guidelines for banks\u2019 integration of sustainability principles in their investment activities." }, { "id": "/?p=449687", "url": "/banking-finance/2022/05/19/449687/peso-ends-unchanged-vs-dollar-after-central-banks-decision/", "title": "Peso ends unchanged vs dollar after central bank\u2019s decision", "content_html": "THE PESO ended flat versus the greenback on Thursday after the central bank hiked benchmark interest rates for the first time since 2018 and amid the decline in global oil prices.
\nThe local unit closed at P52.45 per dollar on Thursday, unchanged from its Wednesday finish, Bankers Association of the Philippines data showed.
\nThe peso opened Thursday\u2019s session at P52.41 versus the dollar. Its weakest showing was at P52.47, while its intraday best was at P52.30 against the greenback.
\nDollars exchanged increased to $1.119 billion on Thursday from $805.9 million on Wednesday.
\nThe peso closed flat versus the dollar after the central bank raised borrowing costs from record lows.
\nThe Bangko Sentral ng Pilipinas (BSP) fired off its first 25-basis-point rate hike in over three years on Thursday to help temper second-round effects of rising prices and inflation expectations while making sure economic recovery remains on track.
\n\u201cThe Monetary Board believes that a timely increase in the BSP\u2019s policy interest rate will help arrest further second-round effects and temper the buildup in inflation expectations,\u201d BSP Governor Benjamin E. Diokno said at an online briefing.
\nEight out of 17 analysts in a 大象传媒 poll had predicted a rate hike from the BSP.
\nThe central bank now expects inflation to average 4.6% this year from 4.3% previously, well beyond the 2-4% target. The forecast for next year was also raised to 3.9% from 3.6%.
\nMeanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort in a Viber message said the market also considered the decline in global oil prices early on Thursday.
\nOil prices had declined to their lowest level in nearly a week early on Thursday due to concerns on how the restrictions in China will hit demand.
\nHowever, fuel prices recovered from early losses as lingering fears over tight global supplies outweighed fears over slower economic growth, Reuters reported.
\nBrent crude rose by 1.2% to $110.41 per barrel, while US crude was up 0.8% to $110.48 a barrel. \u2014 L.W.T Noble with Reuters
\n", "content_text": "THE PESO ended flat versus the greenback on Thursday after the central bank hiked benchmark interest rates for the first time since 2018 and amid the decline in global oil prices.\nThe local unit closed at P52.45 per dollar on Thursday, unchanged from its Wednesday finish, Bankers Association of the Philippines data showed.\nThe peso opened Thursday\u2019s session at P52.41 versus the dollar. Its weakest showing was at P52.47, while its intraday best was at P52.30 against the greenback.\nDollars exchanged increased to $1.119 billion on Thursday from $805.9 million on Wednesday.\nThe peso closed flat versus the dollar after the central bank raised borrowing costs from record lows.\nThe Bangko Sentral ng Pilipinas (BSP) fired off its first 25-basis-point rate hike in over three years on Thursday to help temper second-round effects of rising prices and inflation expectations while making sure economic recovery remains on track.\n\u201cThe Monetary Board believes that a timely increase in the BSP\u2019s policy interest rate will help arrest further second-round effects and temper the buildup in inflation expectations,\u201d BSP Governor Benjamin E. Diokno said at an online briefing.\nEight out of 17 analysts in a 大象传媒 poll had predicted a rate hike from the BSP.\nThe central bank now expects inflation to average 4.6% this year from 4.3% previously, well beyond the 2-4% target. The forecast for next year was also raised to 3.9% from 3.6%.\nMeanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort in a Viber message said the market also considered the decline in global oil prices early on Thursday.\nOil prices had declined to their lowest level in nearly a week early on Thursday due to concerns on how the restrictions in China will hit demand.\nHowever, fuel prices recovered from early losses as lingering fears over tight global supplies outweighed fears over slower economic growth, Reuters reported.\nBrent crude rose by 1.2% to $110.41 per barrel, while US crude was up 0.8% to $110.48 a barrel. \u2014 L.W.T Noble with Reuters", "date_published": "2022-05-19T21:00:01+08:00", "date_modified": "2022-05-19T18:21:16+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/08/Peso-dollar-currency-2.jpg", "tags": [ "Luz Wendy T. Noble", "Banking & Finance" ], "summary": "THE PESO ended flat versus the greenback on Thursday after the central bank hiked benchmark interest rates for the first time since 2018 and amid the decline in global oil prices." }, { "id": "/?p=449517", "url": "/top-stories/2022/05/19/449517/space-for-accommodative-policy-narrowing-diokno-says-bsp-set-to-begin-tightening-cycle/", "title": "Space for accommodative policy narrowing, Diokno says: BSP set to begin tightening cycle", "content_html": "BANGKO SENTRAL ng Pilipinas (BSP) Governor Benjamin E. Diokno on Wednesday said the space for keeping an accommodative policy is shrinking, amid rising inflation risks and the economy\u2019s return to pre-pandemic level in the first quarter.
\n\u201cThe space for maintaining an accommodative policy stance has considerably narrowed given how the April 2022 inflation of 4.9% settled near the higher end of the BSP\u2019s forecast range of 4.2% to 5% [for the month],\u201d he said at an online briefing.
\nMr. Diokno said the better-than-expected 8.3% gross domestic product (GDP) growth in the first quarter, and ongoing downside risks \u201cstrengthen the case for a withdrawal of monetary policy accommodation.\u201d
\n\u201cWhile the BSP stands ready to deal with these risks to inflation and economic growth, any adjustments in the monetary policy stance will be done in a timely manner so as not to disrupt the growth momentum while preventing price pressures from becoming entrenched,\u201d he said.
\nThe BSP chief\u2019s more hawkish signals on policy came a day before the third rate-setting meeting of the Monetary Board for the year.
\nEight out of 17 analysts in a 大象传媒 poll last week expect the central bank to begin its\u00a0 tightening cycle by raising interest rates by 25 basis points (bps) today in order to address rising inflationary pressures.
\nA rate hike on Thursday will be the BSP\u2019s first since 2018.
\nMr. Diokno said second-round effects are \u201cstarting to manifest.\u201d
\nThe recent approval of wage hikes in the National Capital Region and Western Visayas may signal further increases in other regions. Wage petitions have been put on hold since the pandemic began in 2020.
\nThe Labor department said the recently approved wage hikes in Metro Manila and Western Visayas will take effect on June 3.
\nInflation in recent months quickened mainly due to the impact of the war in Ukraine on oil and other commodity prices. Gasoline, diesel, and kerosene prices have increased by P21.60, P31.40, and P27.65 per liter since the start of the year.
\n\u201cWith energy and transport-related items directly accounting for about 14% of the consumer price index basket, a sustained increase in domestic oil prices may result in a disanchoring of inflation expectations,\u201d Mr. Diokno said.
\nMr. Diokno said supply issues continue to be the main factor behind faster inflation in recent months, which he said is still best addressed by interventions from the National Government.
\n\u201cFiscal authorities will need to support the most vulnerable sectors, to help offset rising living costs,\u201d he said.\u00a0 \u201cMonetary authorities will need to carefully monitor the pass-through of rising international prices to domestic inflation, to calibrate appropriate responses.\u201d
\nAt its previous policy review in March, the BSP raised its inflation forecast to 4.3% and 3.6% for 2022 and 2023, respectively.
\n\u201cUpside risks [for inflation] over the near term continue to emanate from the shortage in domestic food supply as well as from the potential impact of higher oil prices on transport fares,\u201d he said.\u00a0
\nThe BSP slashed interest rates by a cumulative 200 basis points in 2020 to help revive an economy that had plunged into recession due to prolonged and stringent coronavirus disease 2019 (COVID-19) lockdowns.
\nIt has kept rates at a record low of 2% since November 2020. \u2014 L.W.T. Noble with inputs from Reuters
\n", "content_text": "BANGKO SENTRAL ng Pilipinas (BSP) Governor Benjamin E. Diokno on Wednesday said the space for keeping an accommodative policy is shrinking, amid rising inflation risks and the economy\u2019s return to pre-pandemic level in the first quarter.\n\u201cThe space for maintaining an accommodative policy stance has considerably narrowed given how the April 2022 inflation of 4.9% settled near the higher end of the BSP\u2019s forecast range of 4.2% to 5% [for the month],\u201d he said at an online briefing.\nMr. Diokno said the better-than-expected 8.3% gross domestic product (GDP) growth in the first quarter, and ongoing downside risks \u201cstrengthen the case for a withdrawal of monetary policy accommodation.\u201d\n\u201cWhile the BSP stands ready to deal with these risks to inflation and economic growth, any adjustments in the monetary policy stance will be done in a timely manner so as not to disrupt the growth momentum while preventing price pressures from becoming entrenched,\u201d he said.\nThe BSP chief\u2019s more hawkish signals on policy came a day before the third rate-setting meeting of the Monetary Board for the year.\nEight out of 17 analysts in a 大象传媒 poll last week expect the central bank to begin its\u00a0 tightening cycle by raising interest rates by 25 basis points (bps) today in order to address rising inflationary pressures.\nA rate hike on Thursday will be the BSP\u2019s first since 2018.\nMr. Diokno said second-round effects are \u201cstarting to manifest.\u201d\nThe recent approval of wage hikes in the National Capital Region and Western Visayas may signal further increases in other regions. Wage petitions have been put on hold since the pandemic began in 2020.\nThe Labor department said the recently approved wage hikes in Metro Manila and Western Visayas will take effect on June 3.\nInflation in recent months quickened mainly due to the impact of the war in Ukraine on oil and other commodity prices. Gasoline, diesel, and kerosene prices have increased by P21.60, P31.40, and P27.65 per liter since the start of the year.\n\u201cWith energy and transport-related items directly accounting for about 14% of the consumer price index basket, a sustained increase in domestic oil prices may result in a disanchoring of inflation expectations,\u201d Mr. Diokno said.\nMr. Diokno said supply issues continue to be the main factor behind faster inflation in recent months, which he said is still best addressed by interventions from the National Government.\n\u201cFiscal authorities will need to support the most vulnerable sectors, to help offset rising living costs,\u201d he said.\u00a0 \u201cMonetary authorities will need to carefully monitor the pass-through of rising international prices to domestic inflation, to calibrate appropriate responses.\u201d\nAt its previous policy review in March, the BSP raised its inflation forecast to 4.3% and 3.6% for 2022 and 2023, respectively.\n\u201cUpside risks [for inflation] over the near term continue to emanate from the shortage in domestic food supply as well as from the potential impact of higher oil prices on transport fares,\u201d he said.\u00a0\nThe BSP slashed interest rates by a cumulative 200 basis points in 2020 to help revive an economy that had plunged into recession due to prolonged and stringent coronavirus disease 2019 (COVID-19) lockdowns.\nIt has kept rates at a record low of 2% since November 2020. \u2014 L.W.T. Noble with inputs from Reuters", "date_published": "2022-05-19T00:34:52+08:00", "date_modified": "2022-05-18T21:07:07+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2022/04/BSP-Diokno.jpg", "tags": [ "Luz Wendy T. Noble", "Editors' Picks", "大象传媒" ], "summary": "BANGKO SENTRAL ng Pilipinas (BSP) Governor Benjamin E. Diokno on Wednesday said the space for keeping an accommodative policy is shrinking, amid rising inflation risks and the economy\u2019s return to pre-pandemic level in the first quarter." }, { "id": "/?p=449403", "url": "/banking-finance/2022/05/19/449403/yields-on-term-deposits-climb-as-market-anticipates-bsp-hike/", "title": "Yields on term deposits climb as market anticipates BSP hike", "content_html": "![\"\"](\"/wp-content/uploads/2021/09/BSP-1.jpg\")
YIELDS on the term deposits of the Bangko Sentral ng Pilipinas (BSP) inched higher on Wednesday as investors expect the regulator to start increasing benchmark rates due to inflation risks.
\nTotal demand for the term deposit facility (TDF) of the central bank amounted to P327.962 billion on Wednesday, going beyond the P260-billion offering. This also surpassed the P312.547 billion in bids recorded a week ago.
\nBroken down, the seven-day papers fetched bids amounting to P146.17 billion, higher than the P120-billion offer but failing to beat the P150.945 billion in tenders last week.
\nBanks asked for yields ranging from 1.9% to 2.125%, wider than the 1.92% to 1.9827% band seen in the previous week\u2019s auction. This caused the average rate of the one-week paper to increase by 2.24 basis points (bps) to 1.9823% from 1.9599% previously.
\nMeanwhile, bids for the 14-day term deposits amounted to P181.792 billion, going beyond the P140 billion auctioned off by the BSP as well as the P161.602 billion in tenders seen on May 11.
\nAccepted rates ranged from 1.95% to 2.2%, barely moving from the 1.9% to 2.25% margin seen a week ago. With this, the average rate of the two-week deposit rose by 6.45 bps to 2.0932% from 2.0287% in the prior auction.
\nThe BSP has not offered 28-day term deposits for more than a year to give way to its weekly auctions of securities with the same tenor.
\nBoth the TDF and 28-day bills are used by the central bank to gather excess liquidity in the financial system and to better guide market rates.
\nAverage TDF yields were higher due to mounting expectations of a BSP rate hike this week amid growing inflation risks, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
\nBSP Governor Benjamin E. Diokno said at an online briefing on Wednesday that \u201c[the] space for maintaining an accommodative policy stance has considerably narrowed\u201d as inflation continues to notch multi-year highs.
\nInflation surged to an annual 4.9% in April, the highest in more than three years as soaring food and energy prices continued to hurt consumers.
\nConsumer prices rose to a 40-month high of 4.9% annually, from 4% in March and 4.1% in April a year ago, preliminary data from the Philippine Statistics Authority showed.
\nIt was the quickest pace since the 5.2% print in December 2018.
\nThe headline figure also breached the central bank\u2019s 2-4% target for the year and is near the upper bound of its 4.2-5% forecast for April.
\nInflation averaged 3.7% in the four months to April, lower than the 4.1% seen in the same period last year. However, it was still lower than the central bank\u2019s 4.3% forecast for the year.
\nSome market players are pricing in a rate hike at the BSP\u2019s meeting on Thursday as faster-than-expected economic growth in the first quarter is seen to put upward pressure on inflation.
\nA 大象传媒 poll of 17 analysts conducted last week showed they are divided on the BSP\u2019s next move, with nine betting rates will remain unchanged, while eight are expecting a 25-bp hike.
\nBenchmark rates have been at record lows since November 2020, when the BSP cut rates by 25 bps.
\nEconomic growth in the first quarter accelerated by a higher-than-expected 8.3% annually on strong household spending as lockdowns were eased, the Philippine Statistics Authority reported last week.
\nIt was a reversal from the 3.8% decline in the same period last year and faster than the 7.8% gross domestic product (GDP) growth logged in the final three months of 2021.
\nThe first quarter\u2019s GDP growth figure was the highest since the 12.1% recorded in the second quarter last year. The latest print is also within the 7-9% target of the government.
\nMeanwhile, the Department of Labor and Employment on Saturday approved a P33 increase for the daily minimum wage in Metro Manila and by P55 to P110 for the Western Visayas region. Wage and fare hikes are among the conditions the central bank said it will monitor for possible second round inflation effects.
\nMr. Ricafort added that the increase in TDF rates tracked rising US yields.
\nReuters reported that the yield on the 10-year Treasuries rose 10.7 bps to 2.986%. This was following upbeat retail sales data which strengthens the case for continued economic growth in the US. \u2014 L.W.T Noble with Reuters
\n", "content_text": "THE central bank\u2019s term deposits fetched higher yields on Wednesday as investors expect a rate hike. \u2014 BW FILE PHOTO\nYIELDS on the term deposits of the Bangko Sentral ng Pilipinas (BSP) inched higher on Wednesday as investors expect the regulator to start increasing benchmark rates due to inflation risks.\nTotal demand for the term deposit facility (TDF) of the central bank amounted to P327.962 billion on Wednesday, going beyond the P260-billion offering. This also surpassed the P312.547 billion in bids recorded a week ago.\nBroken down, the seven-day papers fetched bids amounting to P146.17 billion, higher than the P120-billion offer but failing to beat the P150.945 billion in tenders last week.\nBanks asked for yields ranging from 1.9% to 2.125%, wider than the 1.92% to 1.9827% band seen in the previous week\u2019s auction. This caused the average rate of the one-week paper to increase by 2.24 basis points (bps) to 1.9823% from 1.9599% previously.\nMeanwhile, bids for the 14-day term deposits amounted to P181.792 billion, going beyond the P140 billion auctioned off by the BSP as well as the P161.602 billion in tenders seen on May 11.\nAccepted rates ranged from 1.95% to 2.2%, barely moving from the 1.9% to 2.25% margin seen a week ago. With this, the average rate of the two-week deposit rose by 6.45 bps to 2.0932% from 2.0287% in the prior auction.\nThe BSP has not offered 28-day term deposits for more than a year to give way to its weekly auctions of securities with the same tenor.\nBoth the TDF and 28-day bills are used by the central bank to gather excess liquidity in the financial system and to better guide market rates.\nAverage TDF yields were higher due to mounting expectations of a BSP rate hike this week amid growing inflation risks, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.\nBSP Governor Benjamin E. Diokno said at an online briefing on Wednesday that \u201c[the] space for maintaining an accommodative policy stance has considerably narrowed\u201d as inflation continues to notch multi-year highs.\nInflation surged to an annual 4.9% in April, the highest in more than three years as soaring food and energy prices continued to hurt consumers.\nConsumer prices rose to a 40-month high of 4.9% annually, from 4% in March and 4.1% in April a year ago, preliminary data from the Philippine Statistics Authority showed.\nIt was the quickest pace since the 5.2% print in December 2018.\nThe headline figure also breached the central bank\u2019s 2-4% target for the year and is near the upper bound of its 4.2-5% forecast for April.\nInflation averaged 3.7% in the four months to April, lower than the 4.1% seen in the same period last year. However, it was still lower than the central bank\u2019s 4.3% forecast for the year.\nSome market players are pricing in a rate hike at the BSP\u2019s meeting on Thursday as faster-than-expected economic growth in the first quarter is seen to put upward pressure on inflation.\nA 大象传媒 poll of 17 analysts conducted last week showed they are divided on the BSP\u2019s next move, with nine betting rates will remain unchanged, while eight are expecting a 25-bp hike.\nBenchmark rates have been at record lows since November 2020, when the BSP cut rates by 25 bps.\nEconomic growth in the first quarter accelerated by a higher-than-expected 8.3% annually on strong household spending as lockdowns were eased, the Philippine Statistics Authority reported last week.\nIt was a reversal from the 3.8% decline in the same period last year and faster than the 7.8% gross domestic product (GDP) growth logged in the final three months of 2021.\nThe first quarter\u2019s GDP growth figure was the highest since the 12.1% recorded in the second quarter last year. The latest print is also within the 7-9% target of the government.\nMeanwhile, the Department of Labor and Employment on Saturday approved a P33 increase for the daily minimum wage in Metro Manila and by P55 to P110 for the Western Visayas region. Wage and fare hikes are among the conditions the central bank said it will monitor for possible second round inflation effects.\nMr. Ricafort added that the increase in TDF rates tracked rising US yields.\nReuters reported that the yield on the 10-year Treasuries rose 10.7 bps to 2.986%. This was following upbeat retail sales data which strengthens the case for continued economic growth in the US. \u2014 L.W.T Noble with Reuters", "date_published": "2022-05-19T00:07:48+08:00", "date_modified": "2022-05-18T18:49:12+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/09/BSP-1.jpg", "tags": [ "Luz Wendy T. Noble", "Banking & Finance", "Editors' Picks" ], "summary": "YIELDS on the term deposits of the Bangko Sentral ng Pilipinas (BSP) inched higher on Wednesday as investors expect the regulator to start increasing benchmark rates due to inflation risks." }, { "id": "/?p=449398", "url": "/banking-finance/2022/05/18/449398/peso-weakens-on-hawkish-fed-fears-over-cases-of-subvariant/", "title": "Peso weakens on hawkish Fed, fears over cases of subvariant", "content_html": "![\"\"](\"/wp-content/uploads/2022/04/Peso-dollar-currency.jpg\")
THE PESO weakened versus the greenback on Wednesday as the US Federal Reserve chief said they could tighten rates more aggressively to control rising inflation and amid the confirmation of local transmission of a new subvariant of the coronavirus disease 2019 (COVID-19).
\nThe local unit closed at P52.45 per dollar on Wednesday, losing 2.5 centavos from its P52.425 finish on Tuesday, based on Bankers Association of the Philippines data.
\nThe peso opened Wednesday\u2019s session at P52.35 against the dollar. Its weakest showing was at P52.465, while its intraday best was at P52.35 versus the greenback.
\nDollars traded went down to $805.9 million on Wednesday from $843.1 million on Tuesday.
\nThe peso weakened following hawkish statement from Fed Chairman Jerome H. Powell, a trader said in a Viber message.
\nMr. Powell, in his most hawkish remarks to date, said the US central bank will keep raising interest rates until there is \u201cclear and convincing\u201d evidence that inflation is in retreat, Bloomberg reported.
\n\u201cWhat we need to see is inflation coming down in a clear and convincing way, and we\u2019re going to keep pushing until we see that,\u201d Mr. Powell said Tuesday during a Wall Street Journal live event. \u201cIf that involves moving past broadly understood levels of \u2018neutral,\u2019 we won\u2019t hesitate at all to do that.\u201d
\nThe Fed chair repeatedly stressed the need to curb the hottest inflation in decades during the roughly 35-minute interview, calling price stability \u201cthe bedrock of the economy\u201d and acknowledging that some pain in achieving this \u2014 including a slight rise in the unemployment rate \u2014 was a cost worth paying in order to achieve it.
\nIf the Fed doesn\u2019t see clear and convincing evidence of abating inflationary pressures, \u201cthen we\u2019ll have to consider moving more aggressively,\u201d Mr. Powell said. \u201cIf we do see that, then we can consider moving to a slower pace.\u201d The target range for the benchmark federal funds rate currently stand at 0.75% to 1%. The Federal Open Market Committee next meets June 14-15.
\nMeanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the weaker peso also reflects market worries following the local transmission of another Omicron subvariant.
\nHealth Undersecretary Maria Rosario S. Vergeire on Tuesday said there has been local transmission of the Omicron subvariant BA.2.12.1 in some parts of the country. This is the dominant subvariant in the US and is said to be more contagious.
\nThe Philippines has detected 17 cases of the subvariant, 16 of which were locally acquired while one was a returning Filipino.
\nFor Thursday, Mr. Ricafort gave a forecast range of P52.30 to P52.50 per dollar, while the trader expects the local unit to move within P52.35 to P52.50. \u2014 L.W.T. Noble with Bloomberg
\n", "content_text": "THE PESO declined against the dollar on Wednesday as the US Federal Reserve\u2019s chief said they could raise rates more aggressively to curb rising inflation. \u2014 BW FILE PHOTO\nTHE PESO weakened versus the greenback on Wednesday as the US Federal Reserve chief said they could tighten rates more aggressively to control rising inflation and amid the confirmation of local transmission of a new subvariant of the coronavirus disease 2019 (COVID-19).\nThe local unit closed at P52.45 per dollar on Wednesday, losing 2.5 centavos from its P52.425 finish on Tuesday, based on Bankers Association of the Philippines data.\nThe peso opened Wednesday\u2019s session at P52.35 against the dollar. Its weakest showing was at P52.465, while its intraday best was at P52.35 versus the greenback.\nDollars traded went down to $805.9 million on Wednesday from $843.1 million on Tuesday.\nThe peso weakened following hawkish statement from Fed Chairman Jerome H. Powell, a trader said in a Viber message.\nMr. Powell, in his most hawkish remarks to date, said the US central bank will keep raising interest rates until there is \u201cclear and convincing\u201d evidence that inflation is in retreat, Bloomberg reported.\n\u201cWhat we need to see is inflation coming down in a clear and convincing way, and we\u2019re going to keep pushing until we see that,\u201d Mr. Powell said Tuesday during a Wall Street Journal live event. \u201cIf that involves moving past broadly understood levels of \u2018neutral,\u2019 we won\u2019t hesitate at all to do that.\u201d\nThe Fed chair repeatedly stressed the need to curb the hottest inflation in decades during the roughly 35-minute interview, calling price stability \u201cthe bedrock of the economy\u201d and acknowledging that some pain in achieving this \u2014 including a slight rise in the unemployment rate \u2014 was a cost worth paying in order to achieve it.\nIf the Fed doesn\u2019t see clear and convincing evidence of abating inflationary pressures, \u201cthen we\u2019ll have to consider moving more aggressively,\u201d Mr. Powell said. \u201cIf we do see that, then we can consider moving to a slower pace.\u201d The target range for the benchmark federal funds rate currently stand at 0.75% to 1%. The Federal Open Market Committee next meets June 14-15.\nMeanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the weaker peso also reflects market worries following the local transmission of another Omicron subvariant.\nHealth Undersecretary Maria Rosario S. Vergeire on Tuesday said there has been local transmission of the Omicron subvariant BA.2.12.1 in some parts of the country. This is the dominant subvariant in the US and is said to be more contagious.\nThe Philippines has detected 17 cases of the subvariant, 16 of which were locally acquired while one was a returning Filipino.\nFor Thursday, Mr. Ricafort gave a forecast range of P52.30 to P52.50 per dollar, while the trader expects the local unit to move within P52.35 to P52.50. \u2014 L.W.T. Noble with Bloomberg", "date_published": "2022-05-18T21:00:27+08:00", "date_modified": "2022-05-18T18:34:38+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2022/04/Peso-dollar-currency.jpg", "tags": [ "Luz Wendy T. Noble", "Banking & Finance" ], "summary": "THE PESO weakened versus the greenback on Wednesday as the US Federal Reserve chief said they could tighten rates more aggressively to control rising inflation and amid the confirmation of local transmission of a new subvariant of the coronavirus disease 2019 (COVID-19)." }, { "id": "/?p=449180", "url": "/top-stories/2022/05/18/449180/phl-economy-now-seen-to-grow-by-8-this-year/", "title": "PHL economy now seen to grow by 8% this year", "content_html": "THE Philippine economy is expected to grow by 8% this year on the back of upbeat first-quarter economic expansion, Standard Chartered Bank economists said.
\nIn a report, Standard Chartered Chief Economist for Southeast Asia and India Edward Lee and economist Jonathan Koh said the bank had raised its Philippine gross domestic product (GDP) growth forecast to 8% in 2022 from 7.5% previously.
\nThe projection is well within the 7-9% target of economic managers.
\n\u201cBy industry, 11 of 16 industries expanded quarter on quarter and we estimate that 72% of the economy is above pre-COVID levels. The first-quarter GDP print validates the narrative that the Philippines\u2019 economic recovery has gained traction,\u201d they said.
\nPhilippine GDP expanded by a faster-than-expected 8.3% in the first quarter, a turnaround from the 3.8% contraction a year earlier. It was also faster than the 7.8% growth in the fourth quarter of 2021.
\nStandard Chartered hiked its Philippine inflation forecast to 4.5% this year from 3.6% \u201con higher-than-expected inflation year to date, driven by higher oil, electricity and food prices.\u201d
\n\u201cWith China sticking to its dynamic zero-COVID policy and the Russia-Ukraine war, supply-side disruptions may persist through the year, keeping commodity prices elevated,\u201d the Standard Chartered economists said.
\n\u201cIn addition, the robust economic recovery and improving labor market conditions may lead to broadening inflationary pressures in the months ahead.\u201d
\nHeadline inflation surged to a three-year high of 4.9% in April, surpassing the 2-4% target set by the Bangko Sentral ng Pilipinas (BSP).
\nThe economists said they now expect the BSP to raise interest rates by 150 basis points (bps) this year, starting with the May 19 meeting.
\n\u201cWe now expect monetary policy normalization by BSP to begin earlier and move at a faster pace. We now project six consecutive policy rate hikes of 25 bps each, starting in May and ending in December, to bring the policy rate to 3.5% by end-2022.\u201d
\nThey said hikes worth 50 bps in the next meetings might also be possible if inflation reaches the 6% level.
\n\u201cHowever, our base case assumes that BSP will opt for a measured and gradual pace of rate hikes to support a sustainable economic growth recovery amid still elevated uncertainty,\u201d they said.
\nBSP Governor Benjamin E. Diokno earlier said they might consider a rate hike in June. He has also said they are ready to respond preemptively if inflation risks become more prevalent.
\nEight of 17 analysts in a 大象传媒 poll expect the central bank to start increasing interest rates at its Thursday meeting given stronger growth in the first quarter. They said this is enough reason for the BSP to start focusing its response on surging inflation. \u2014 Luz Wendy T. Noble
\n", "content_text": "THE Philippine economy is expected to grow by 8% this year on the back of upbeat first-quarter economic expansion, Standard Chartered Bank economists said.\nIn a report, Standard Chartered Chief Economist for Southeast Asia and India Edward Lee and economist Jonathan Koh said the bank had raised its Philippine gross domestic product (GDP) growth forecast to 8% in 2022 from 7.5% previously.\nThe projection is well within the 7-9% target of economic managers.\n\u201cBy industry, 11 of 16 industries expanded quarter on quarter and we estimate that 72% of the economy is above pre-COVID levels. The first-quarter GDP print validates the narrative that the Philippines\u2019 economic recovery has gained traction,\u201d they said.\nPhilippine GDP expanded by a faster-than-expected 8.3% in the first quarter, a turnaround from the 3.8% contraction a year earlier. It was also faster than the 7.8% growth in the fourth quarter of 2021.\nStandard Chartered hiked its Philippine inflation forecast to 4.5% this year from 3.6% \u201con higher-than-expected inflation year to date, driven by higher oil, electricity and food prices.\u201d\n\u201cWith China sticking to its dynamic zero-COVID policy and the Russia-Ukraine war, supply-side disruptions may persist through the year, keeping commodity prices elevated,\u201d the Standard Chartered economists said.\n\u201cIn addition, the robust economic recovery and improving labor market conditions may lead to broadening inflationary pressures in the months ahead.\u201d\nHeadline inflation surged to a three-year high of 4.9% in April, surpassing the 2-4% target set by the Bangko Sentral ng Pilipinas (BSP).\nThe economists said they now expect the BSP to raise interest rates by 150 basis points (bps) this year, starting with the May 19 meeting.\n\u201cWe now expect monetary policy normalization by BSP to begin earlier and move at a faster pace. We now project six consecutive policy rate hikes of 25 bps each, starting in May and ending in December, to bring the policy rate to 3.5% by end-2022.\u201d\nThey said hikes worth 50 bps in the next meetings might also be possible if inflation reaches the 6% level.\n\u201cHowever, our base case assumes that BSP will opt for a measured and gradual pace of rate hikes to support a sustainable economic growth recovery amid still elevated uncertainty,\u201d they said.\nBSP Governor Benjamin E. Diokno earlier said they might consider a rate hike in June. He has also said they are ready to respond preemptively if inflation risks become more prevalent.\nEight of 17 analysts in a 大象传媒 poll expect the central bank to start increasing interest rates at its Thursday meeting given stronger growth in the first quarter. They said this is enough reason for the BSP to start focusing its response on surging inflation. \u2014 Luz Wendy T. Noble", "date_published": "2022-05-18T01:10:40+08:00", "date_modified": "2022-05-17T23:02:50+08:00", "authors": [ { "name": "大象传媒", "url": "/author/blexticauldulack/", "avatar": "https://secure.gravatar.com/avatar/1311207d4ac1996cb586666fe3d56418ca9f007d735b74eb19d3fa440df5c8b4?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/blexticauldulack/", "avatar": "https://secure.gravatar.com/avatar/1311207d4ac1996cb586666fe3d56418ca9f007d735b74eb19d3fa440df5c8b4?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2022/05/02-CROWD_MARKETMARIKINA_04_VARCAS_020322-scaled.jpg", "tags": [ "Luz Wendy T. Noble", "Editors' Picks", "大象传媒" ] }, { "id": "/?p=449006", "url": "/banking-finance/2022/05/18/449006/bangko-sentral-opens-currency-exchange-facility-for-filipinos-returning-from-ukraine-due-to-war/", "title": "Bangko Sentral opens currency exchange facility for Filipinos returning from Ukraine due to war", "content_html": "The Bangko Sentral ng Pilipinas (BSP) has launched a program that will allow Filipinos returning from Ukraine to exchange their Ukrainian hryvnia (UAH) to peso to support migrants displaced from the war-stricken country.
\nThe currency exchange facility approved by the Monetary Board will allow returning overseas Filipino workers (OFWs) and their families to exchange their UAH holdings equivalent to not more than P20,000 per eligible person, based on BSP Circular 1145 Series of 2022 released by the central bank late Monday.
\nAmounts beyond that will be exchanged for highly meritorious reasons and subject to approval by the central bank.
\nThe foreign exchange (FX) facility will be accessible for OFWs who have returned to the country from Feb. 22 onwards. It will be available for four months after the effectivity of the circular.
\nOFWs and their family members who want to tap the FX facility are required to present documentary proof of their travel from Ukraine.
\nThe exchange may be done through the BSP\u2019s head office, regional offices and branches, as well as authorized agent banks.
\nRussia invaded Ukraine on Feb. 24, and the war has no end in sight to date as both parties continue to fight.
\nIn 2021, remittances from Ukraine amounted to $121,000. This is relatively small compared with the $3.745 billion worth of inflows from Europe and the $31.417-billion total from all over the world.
\nThe Philippine government has assisted more than 400 Filipinos for repatriation from Ukraine as of March, based on data from the Department of Foreign Affairs. \u2014 Luz Wendy T. Noble
\n", "content_text": "The Bangko Sentral ng Pilipinas (BSP) has launched a program that will allow Filipinos returning from Ukraine to exchange their Ukrainian hryvnia (UAH) to peso to support migrants displaced from the war-stricken country.\nThe currency exchange facility approved by the Monetary Board will allow returning overseas Filipino workers (OFWs) and their families to exchange their UAH holdings equivalent to not more than P20,000 per eligible person, based on BSP Circular 1145 Series of 2022 released by the central bank late Monday.\nAmounts beyond that will be exchanged for highly meritorious reasons and subject to approval by the central bank.\nThe foreign exchange (FX) facility will be accessible for OFWs who have returned to the country from Feb. 22 onwards. It will be available for four months after the effectivity of the circular.\nOFWs and their family members who want to tap the FX facility are required to present documentary proof of their travel from Ukraine.\nThe exchange may be done through the BSP\u2019s head office, regional offices and branches, as well as authorized agent banks.\nRussia invaded Ukraine on Feb. 24, and the war has no end in sight to date as both parties continue to fight.\nIn 2021, remittances from Ukraine amounted to $121,000. This is relatively small compared with the $3.745 billion worth of inflows from Europe and the $31.417-billion total from all over the world.\nThe Philippine government has assisted more than 400 Filipinos for repatriation from Ukraine as of March, based on data from the Department of Foreign Affairs. \u2014 Luz Wendy T. Noble", "date_published": "2022-05-18T00:02:19+08:00", "date_modified": "2022-05-17T20:13:55+08:00", "authors": [ { "name": "大象传媒", "url": "/author/winseciontainkes/", "avatar": "https://secure.gravatar.com/avatar/5aebc87a76b327f90fc9671dea4220c74092c328c9b13ee03e93a20601e350d3?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/winseciontainkes/", "avatar": "https://secure.gravatar.com/avatar/5aebc87a76b327f90fc9671dea4220c74092c328c9b13ee03e93a20601e350d3?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2022/05/2018-09-20T025348Z_589576225_RC15A90363C0_RTRMADP_3_PHILIPPINES-ECONOMY-REMITTANCES.jpg", "tags": [ "Featured2", "Luz Wendy T. Noble", "Banking & Finance", "Editors' Picks" ] }, { "id": "/?p=449004", "url": "/banking-finance/2022/05/17/449004/peso-climbs-vs-dollar-as-march-remittances-rise/", "title": "Peso climbs vs dollar as March remittances rise", "content_html": "THE PESO strengthened versus the greenback on Tuesday following strong remittance data.
\nThe local unit closed at P52.425 on Tuesday, appreciating by 6.8 centavos from its P52.493 close on Monday, based on Bankers Association of the Philippines data.
\nThe peso opened Tuesday\u2019s session at P52.45 versus the dollar. Its weakest showing was at P52.48, while its intraday best was at P52.41 against the greenback.
\nDollars exchanged increased to $843.1 million on Tuesday from $549.84 million on Monday.
\nThe peso strengthened following the release of data on March remittances, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
\nCash remittances from overseas Filipinos increased by 3.2% to $2.59 billion in March from a year earlier, central bank data released on Monday showed.
\nThis brought inflows for the first quarter to $7.77 billion, up by 2.4% from the same period of 2021. The central bank expects remittances to grow by 4% this year.
\nMeanwhile, a trader in an e-mail said the peso appreciated due to growing market expectations of a rate hike amid inflation concerns.
\nEight out of 17 analysts in a 大象传媒 poll last week expect the central bank to start increasing interest rates given the stronger growth in the first quarter, which could put upward pressure on inflation.
\nThe Department of Labor and Employment this Saturday approved a P33 increase for the daily minimum wage in Metro Manila and by P55 to P110 for the Western Visayas Region. Wage and fare hikes are among the factors the Bangko Sentral ng Pilipinas said it will monitor for possible second-round inflation effects.
\nFor Wednesday, Mr. Ricafort gave a forecast range of P52.35 to P52.50 per dollar, while the trader expects the local unit to move within P52.30 to P52.50. \u2014 L.W.T Noble
\n", "content_text": "THE PESO strengthened versus the greenback on Tuesday following strong remittance data.\nThe local unit closed at P52.425 on Tuesday, appreciating by 6.8 centavos from its P52.493 close on Monday, based on Bankers Association of the Philippines data.\nThe peso opened Tuesday\u2019s session at P52.45 versus the dollar. Its weakest showing was at P52.48, while its intraday best was at P52.41 against the greenback.\nDollars exchanged increased to $843.1 million on Tuesday from $549.84 million on Monday.\nThe peso strengthened following the release of data on March remittances, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.\nCash remittances from overseas Filipinos increased by 3.2% to $2.59 billion in March from a year earlier, central bank data released on Monday showed.\nThis brought inflows for the first quarter to $7.77 billion, up by 2.4% from the same period of 2021. The central bank expects remittances to grow by 4% this year.\nMeanwhile, a trader in an e-mail said the peso appreciated due to growing market expectations of a rate hike amid inflation concerns.\nEight out of 17 analysts in a 大象传媒 poll last week expect the central bank to start increasing interest rates given the stronger growth in the first quarter, which could put upward pressure on inflation.\nThe Department of Labor and Employment this Saturday approved a P33 increase for the daily minimum wage in Metro Manila and by P55 to P110 for the Western Visayas Region. Wage and fare hikes are among the factors the Bangko Sentral ng Pilipinas said it will monitor for possible second-round inflation effects.\nFor Wednesday, Mr. Ricafort gave a forecast range of P52.35 to P52.50 per dollar, while the trader expects the local unit to move within P52.30 to P52.50. \u2014 L.W.T Noble", "date_published": "2022-05-17T21:00:00+08:00", "date_modified": "2022-05-17T19:58:51+08:00", "authors": [ { "name": "大象传媒", "url": "/author/winseciontainkes/", "avatar": "https://secure.gravatar.com/avatar/5aebc87a76b327f90fc9671dea4220c74092c328c9b13ee03e93a20601e350d3?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/winseciontainkes/", "avatar": "https://secure.gravatar.com/avatar/5aebc87a76b327f90fc9671dea4220c74092c328c9b13ee03e93a20601e350d3?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2022/04/peso-currency-e1650466856590.jpg", "tags": [ "Luz Wendy T. Noble", "Banking & Finance" ] }, { "id": "/?p=448837", "url": "/top-stories/2022/05/17/448837/duterte-orders-govt-agencies-to-use-digital-payment-systems/", "title": "Duterte orders gov\u2019t agencies to use digital payment systems", "content_html": "PRESIDENT Rodrigo R. Duterte ordered all government agencies to use digital methods in disbursing and collecting payments, a step that could put the Philippines closer to becoming a cash-lite society.
\nIn Executive Order (EO) No. 170, Mr. Duterte said the digitalization of payments is in line with the government\u2019s effort to develop an inclusive digital financial ecosystem, which would make formal financial services accessible to more Filipinos.
\n\u201cAll departments, agencies, and instrumentalities of the government, including state universities and colleges, government-owned or -controlled corporations, are hereby directed, and local government units are hereby enjoined, to adopt digital payments for their respective disbursements and collections,\u201d the order stated.
\nThe EO also directed all covered agencies to use \u201csafe and efficient\u201d digital disbursement, including distribution of financial assistance and payment of salaries, wages and allowances to employees.
\n\u201cCovered agencies shall be allowed to disburse funds directly into the transaction accounts of recipients or beneficiaries, whether held in government or private financial institutions, without need of a special arrangement from the financial institutions concerned,\u201d the order read.
\nA government servicing bank will carry out the payment instructions, and is allowed to collect fees from covered agencies for electronic fund transfers.
\nThe EO also requires all covered agencies to offer a digital mode of collecting payments for taxes, fees, tolls and other charges. These agencies should still accept cash and other traditional forms of payment.
\n\u201cDigital collection of payments will expedite transactions, generate savings for the government, and reduce the risk for graft and corruption,\u201d Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said via Twitter.
\nCovered agencies are expected to adopt a business continuity plan that will be implemented in times of calamity to ensure digital payments will not be affected, and to ensure traditional payout channels can be offered.
\nThese institutions can also tap payment service providers that are compliant with the National Retail Payment System Framework.
\nA technical working group (TWG) on the adoption of digital payments will be formed, composed of representatives from the departments of Finance and Budget, Bureau of the Treasury, Bureau of Internal Revenue (BIR), and the Government Procurement Policy Board Technical Support Office.\u00a0
\nImplementing rules and regulations (IRR) should be released within 90 days from the effectivity of the EO.
\nCovered agencies will be given six months after the issuance of the IRR to fully implement digital disbursements and collections. However, a tiered transition period may be allowed for other government agencies, depending on their operational readiness and capability.
\nFunding for the initial implementation of the EO will be under the respective budgets of the covered agencies. For the succeeding years, the funding will be incorporated in their respective regular appropriations or corporate operating budgets.
\n\u201cConcerned agencies are encouraged to establish programs to capacitate their personnel on innovative technologies, payment systems, and cybersecurity and data privacy protection tools, and shall build public understanding on digital financial services,\u201d the order stated.
\nThe TWG will determine which agencies are capable of adopting digital payments within a shorter or longer period.
\nFintech Alliance.ph Chairman Angelito M. Villanueva said that government-to-person as well as person-to-government transactions are among the largest financial transaction use cases that could help boost digital adoption in the country.
\n\u201cThis must be complemented with fast, reliable, and affordable data and telecoms infrastructure even in remote areas in the country to allow more users to embrace it,\u201d Mr. Villanueva said in a Viber message.
\nBased on data from the Bangko Sentral ng Pilipinas, 93.2% of government payments were done digitally in 2020. Payment of salaries for government employees was fully digitalized in the same year.
\nDigital payments made up 20.1% of all transaction volumes in 2020. By 2023, the BSP is looking to bring digital payments to 50% of all transaction volume. \u2014 Luz Wendy T. Noble
\n", "content_text": "PRESIDENT Rodrigo R. Duterte ordered all government agencies to use digital methods in disbursing and collecting payments, a step that could put the Philippines closer to becoming a cash-lite society.\nIn Executive Order (EO) No. 170, Mr. Duterte said the digitalization of payments is in line with the government\u2019s effort to develop an inclusive digital financial ecosystem, which would make formal financial services accessible to more Filipinos.\n\u201cAll departments, agencies, and instrumentalities of the government, including state universities and colleges, government-owned or -controlled corporations, are hereby directed, and local government units are hereby enjoined, to adopt digital payments for their respective disbursements and collections,\u201d the order stated.\nThe EO also directed all covered agencies to use \u201csafe and efficient\u201d digital disbursement, including distribution of financial assistance and payment of salaries, wages and allowances to employees.\n\u201cCovered agencies shall be allowed to disburse funds directly into the transaction accounts of recipients or beneficiaries, whether held in government or private financial institutions, without need of a special arrangement from the financial institutions concerned,\u201d the order read.\nA government servicing bank will carry out the payment instructions, and is allowed to collect fees from covered agencies for electronic fund transfers.\nThe EO also requires all covered agencies to offer a digital mode of collecting payments for taxes, fees, tolls and other charges. These agencies should still accept cash and other traditional forms of payment.\n\u201cDigital collection of payments will expedite transactions, generate savings for the government, and reduce the risk for graft and corruption,\u201d Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said via Twitter. \nCovered agencies are expected to adopt a business continuity plan that will be implemented in times of calamity to ensure digital payments will not be affected, and to ensure traditional payout channels can be offered. \nThese institutions can also tap payment service providers that are compliant with the National Retail Payment System Framework. \nA technical working group (TWG) on the adoption of digital payments will be formed, composed of representatives from the departments of Finance and Budget, Bureau of the Treasury, Bureau of Internal Revenue (BIR), and the Government Procurement Policy Board Technical Support Office.\u00a0\nImplementing rules and regulations (IRR) should be released within 90 days from the effectivity of the EO.\nCovered agencies will be given six months after the issuance of the IRR to fully implement digital disbursements and collections. However, a tiered transition period may be allowed for other government agencies, depending on their operational readiness and capability.\nFunding for the initial implementation of the EO will be under the respective budgets of the covered agencies. For the succeeding years, the funding will be incorporated in their respective regular appropriations or corporate operating budgets.\n\u201cConcerned agencies are encouraged to establish programs to capacitate their personnel on innovative technologies, payment systems, and cybersecurity and data privacy protection tools, and shall build public understanding on digital financial services,\u201d the order stated.\nThe TWG will determine which agencies are capable of adopting digital payments within a shorter or longer period.\nFintech Alliance.ph Chairman Angelito M. Villanueva said that government-to-person as well as person-to-government transactions are among the largest financial transaction use cases that could help boost digital adoption in the country.\n\u201cThis must be complemented with fast, reliable, and affordable data and telecoms infrastructure even in remote areas in the country to allow more users to embrace it,\u201d Mr. Villanueva said in a Viber message.\nBased on data from the Bangko Sentral ng Pilipinas, 93.2% of government payments were done digitally in 2020. Payment of salaries for government employees was fully digitalized in the same year. \nDigital payments made up 20.1% of all transaction volumes in 2020. By 2023, the BSP is looking to bring digital payments to 50% of all transaction volume. \u2014 Luz Wendy T. Noble", "date_published": "2022-05-17T00:32:51+08:00", "date_modified": "2022-05-16T20:45:17+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2022/05/BIR-1.jpg", "tags": [ "Featured2", "Luz Wendy T. Noble", "Editors' Picks", "大象传媒" ], "summary": "PRESIDENT Rodrigo R. Duterte ordered all government agencies to use digital methods in disbursing and collecting payments, a step that could put the Philippines closer to becoming a cash-lite society." }, { "id": "/?p=448758", "url": "/banking-finance/2022/05/17/448758/security-bank-posts-higher-net-income-in-the-first-quarter/", "title": "Security Bank posts higher net income in the first quarter", "content_html": "![\"\"](\"/wp-content/uploads/2022/05/Security_Bank_Logo-1.jpg\"){kind=logo}
SECURITY BANK Corp. recorded a higher net income in the first three months of the year, buoyed by lower loan loss buffers and an improvement in its core income.
The bank\u2019s net profit rose by 66% to P2.7 billion in the first quarter, it said in a filing with the local bourse on Monday.
\nThis translated to return on shareholders\u2019 equity of 8.81%, while return on assets stood at 1.55%. Both improved from the 5.38% and 0.96% seen a year earlier.
\nNet interest income increased by 5% to P7 billion, even as its net interest margin slipped by 2 basis points year on year to 4.19%.
\nMeanwhile, non-interest income rose by 8% to P2.3 billion.
\nBroken down, earnings from fees, service charges and commissions increased 22% to P1.3 billion, driven by the fees from deposits, capital market and credit cards.
\nOther income excluding securities trading gains and fee income rose more than double to P1 billion, driven mainly by recovery on charged-off assets and foreign exchange income.
\nSecurity Bank\u2019s operating expenses went up by 8% as the lender ramped up its investments in technology and manpower. The cost-to-income ratio increased to 58.96% from 57.6% a year earlier.
\nGross loans rose by 8% to P475 billion, as the 11% growth in wholesale loans offset a 4% decrease in retail loans.
\nThe bank\u2019s gross nonperforming loan (NPL) ratio improved to 3.65% as of end-March from 3.94% as of end-December, while NPL reserve cover stood at 90%.
\nAs asset quality improved, Security Bank set aside provisions for credit losses amounting to P80 million, down 80% from P402 million a year earlier.
\nMeanwhile, total deposits increased by 2% to P530 billion as of end-March from a year earlier. This was driven by low-cost savings and demand deposits, which grew by 20% and 61%, respectively.
\nAs of end-March, the bank\u2019s total assets and shareholders\u2019 capital stood at P707 billion and P122.5 billion, respectively.
\nThe lender\u2019s common equity Tier 1 ratio and its total adequacy ratio were at 18.1% and 18.6%, respectively.
\nSecurity Bank President and Chief Executive Officer Sanjiv Vohra said they have seen improvement in client activity for corporate and home loans in the first quarter, despite the Omicron surge.
\n\u201cVarious macro factors are unfolding in the coming months including: new government policy, the war in Ukraine, and central bank action on inflation. We are constructively engaged with our clients to help them navigate the current environment,\u201d he said.
\nThe lender\u2019s shares closed at P92.70 apiece on Monday, up 4.16% or P3.70 from the previous finish. \u2014 Luz Wendy T. Noble
\n", "content_text": "SECURITY BANK Corp. recorded a higher net income in the first three months of the year, buoyed by lower loan loss buffers and an improvement in its core income.\nThe bank\u2019s net profit rose by 66% to P2.7 billion in the first quarter, it said in a filing with the local bourse on Monday.\nThis translated to return on shareholders\u2019 equity of 8.81%, while return on assets stood at 1.55%. Both improved from the 5.38% and 0.96% seen a year earlier.\nNet interest income increased by 5% to P7 billion, even as its net interest margin slipped by 2 basis points year on year to 4.19%.\nMeanwhile, non-interest income rose by 8% to P2.3 billion.\nBroken down, earnings from fees, service charges and commissions increased 22% to P1.3 billion, driven by the fees from deposits, capital market and credit cards.\nOther income excluding securities trading gains and fee income rose more than double to P1 billion, driven mainly by recovery on charged-off assets and foreign exchange income. \nSecurity Bank\u2019s operating expenses went up by 8% as the lender ramped up its investments in technology and manpower. The cost-to-income ratio increased to 58.96% from 57.6% a year earlier.\nGross loans rose by 8% to P475 billion, as the 11% growth in wholesale loans offset a 4% decrease in retail loans.\nThe bank\u2019s gross nonperforming loan (NPL) ratio improved to 3.65% as of end-March from 3.94% as of end-December, while NPL reserve cover stood at 90%.\nAs asset quality improved, Security Bank set aside provisions for credit losses amounting to P80 million, down 80% from P402 million a year earlier.\nMeanwhile, total deposits increased by 2% to P530 billion as of end-March from a year earlier. This was driven by low-cost savings and demand deposits, which grew by 20% and 61%, respectively.\nAs of end-March, the bank\u2019s total assets and shareholders\u2019 capital stood at P707 billion and P122.5 billion, respectively.\nThe lender\u2019s common equity Tier 1 ratio and its total adequacy ratio were at 18.1% and 18.6%, respectively.\nSecurity Bank President and Chief Executive Officer Sanjiv Vohra said they have seen improvement in client activity for corporate and home loans in the first quarter, despite the Omicron surge.\n\u201cVarious macro factors are unfolding in the coming months including: new government policy, the war in Ukraine, and central bank action on inflation. We are constructively engaged with our clients to help them navigate the current environment,\u201d he said.\nThe lender\u2019s shares closed at P92.70 apiece on Monday, up 4.16% or P3.70 from the previous finish. \u2014 Luz Wendy T. Noble", "date_published": "2022-05-17T00:02:38+08:00", "date_modified": "2022-05-16T18:38:20+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2022/05/Security_Bank_Logo-1.jpg", "tags": [ "Featured2", "Luz Wendy T. Noble", "Banking & Finance", "Editors' Picks" ], "summary": "SECURITY BANK Corp. recorded a higher net income in the first three months of the year, buoyed by lower loan loss buffers and an improvement in its core income." }, { "id": "/?p=448756", "url": "/banking-finance/2022/05/16/448756/peso-drops-on-powell-hints-wage-hike-risks/", "title": "Peso drops on Powell hints, wage hike risks", "content_html": "THE PESO weakened anew versus the greenback on Monday following hawkish signals from the US Federal Reserve and due to inflation risks amid wage hikes.
\nThe local unit closed at P52.493 per dollar on Monday, shedding 4.3 centavos from its P52.45 close on Friday, based on Bankers Association of the Philippines data.
\nThe peso opened Monday\u2019s session at P52.40 against the dollar. Its weakest showing was at P52.499, while its intraday best was at P52.38 versus the greenback.
\nDollars exchanged dropped to $549.84 million on Monday from $978.4 million on Friday.
\nThe peso depreciated as the Fed chief continued to hint on the central bank\u2019s monetary policy tightening plans this year, a trader said in an e-mail.
\nUS Fed Chairman Jerome H. Powell on Thursday reaffirmed they are likely to increase interest rates by 50 basis points (bps) for each of their policy review on June and July, Bloomberg reported. He also said they are prepared to do more, although he said they are not actively considering a 75-bp hike.
\nMeanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso weakened following the approved wage hikes in some areas of the country.
\n\u201cThis could lead to higher inflation amid possible risk of second-round inflation effects that also justify any hike in local policy rates,\u201d Mr. Ricafort said in a Viber message.
\nThe Department of Labor and Employment this Saturday approved a P33 increase for the daily minimum wage in Metro Manila and by P55 to P110 for the Western Visayas Region.
\nThe Bangko Sentral ng Pilipinas (BSP) Monetary Board is meeting to review its policy settings on Thursday.
\nA 大象传媒 poll of 17 analysts conducted last week showed they are divided on the BSP\u2019s next move, with nine betting rates will remain unchanged, while eight are expecting a 25-basis-point (bp) hike on Thursday.
\nSome analysts said the central bank could still keep rates at record lows on Thursday to wait for more proof of a robust economic recovery, although some analysts said the BSP can already start tightening following stronger-than-expected economic growth in the first quarter.
\nFor Tuesday, both Mr. Ricafort and the trader gave a forecast range of P52.35 to P52.55 versus the dollar. \u2014 L.W.T. Noble with Bloomberg
\n", "content_text": "THE PESO weakened anew versus the greenback on Monday following hawkish signals from the US Federal Reserve and due to inflation risks amid wage hikes.\nThe local unit closed at P52.493 per dollar on Monday, shedding 4.3 centavos from its P52.45 close on Friday, based on Bankers Association of the Philippines data.\nThe peso opened Monday\u2019s session at P52.40 against the dollar. Its weakest showing was at P52.499, while its intraday best was at P52.38 versus the greenback.\nDollars exchanged dropped to $549.84 million on Monday from $978.4 million on Friday.\nThe peso depreciated as the Fed chief continued to hint on the central bank\u2019s monetary policy tightening plans this year, a trader said in an e-mail.\nUS Fed Chairman Jerome H. Powell on Thursday reaffirmed they are likely to increase interest rates by 50 basis points (bps) for each of their policy review on June and July, Bloomberg reported. He also said they are prepared to do more, although he said they are not actively considering a 75-bp hike.\nMeanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso weakened following the approved wage hikes in some areas of the country.\n\u201cThis could lead to higher inflation amid possible risk of second-round inflation effects that also justify any hike in local policy rates,\u201d Mr. Ricafort said in a Viber message.\nThe Department of Labor and Employment this Saturday approved a P33 increase for the daily minimum wage in Metro Manila and by P55 to P110 for the Western Visayas Region.\nThe Bangko Sentral ng Pilipinas (BSP) Monetary Board is meeting to review its policy settings on Thursday.\nA 大象传媒 poll of 17 analysts conducted last week showed they are divided on the BSP\u2019s next move, with nine betting rates will remain unchanged, while eight are expecting a 25-basis-point (bp) hike on Thursday.\nSome analysts said the central bank could still keep rates at record lows on Thursday to wait for more proof of a robust economic recovery, although some analysts said the BSP can already start tightening following stronger-than-expected economic growth in the first quarter.\nFor Tuesday, both Mr. Ricafort and the trader gave a forecast range of P52.35 to P52.55 versus the dollar. \u2014 L.W.T. Noble with Bloomberg", "date_published": "2022-05-16T21:00:37+08:00", "date_modified": "2022-05-16T18:25:12+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2022/02/peso-coins.jpg", "tags": [ "Luz Wendy T. Noble", "Banking & Finance" ], "summary": "THE PESO weakened anew versus the greenback on Monday following hawkish signals from the US Federal Reserve and due to inflation risks amid wage hikes." }, { "id": "/?p=448823", "url": "/economy/2022/05/16/448823/phl-seen-facing-risk-of-imported-inflation-as-currency-weakens/", "title": "PHL seen facing risk of imported inflation as currency weakens", "content_html": "THE PHILIPPINES is among those economies exposed to a heightened risk of imported inflation due to its depreciating currency, according to Nomura Global Markets Research.
\n\u201c(I)nflation is already above central bank targets in four economies (India, South Korea, the Philippines and Thailand), all of which have sufficient (foreign exchange) reserve buffers to smoothen the pace of depreciation, but this would mean faster domestic liquidity withdrawals (India falls in this camp) or even higher inflation, if they allow the currency to adjust (the Philippines and Thailand), which could nudge these central banks even closer to policy exit, in our view,\u201d Nomura said in a note on Monday.\u00a0
\nThe report, issued by research analysts Sonal Varma, Ting Lu, Euben Paracuelles, and Jeongwoo Park, classified the Philippines, along with Thailand and Indonesia, as economies experiencing \u201cwarm\u201d inflation.
\nThe analysts assessed inflation by looking at the trimmed mean and weighted median consumer price index of these economies.
\n\u201cFor the ASEAN-3 in the warm inflation bucket, the central banks can afford to be relatively patient for now, but we expect most to pivot in the coming months due to either rising inflation, fiscal or balance of payment risks,\u201d it said.
\nHeadline inflation in the Philippines rose to a three-year high of 4.9% in April. This reflected the impact of the Russia-Ukraine war on food, transport and utilities.
\nThe central bank expects inflation to hit 4.3% this year, above its 2-4% target range, amid rising oil and commodity prices.
\nNomura said currency weakness could worsen imported inflation risk at a time of already elevated commodity prices and supply chain disruptions.
\nClosing at P52.493 to the dollar on Monday, the peso is down by 2.9% from its level at the end of 2021.
\nPhilippine dollar reserves totaled $106.75 billion at the end of April. This is equivalent to 9.4 months\u2019 worth of imports of goods and payments of services and primary income.
\nThe Monetary Board will convene for its third rate-setting of the year on May 19. \u2014 Luz Wendy T. Noble
\n", "content_text": "THE PHILIPPINES is among those economies exposed to a heightened risk of imported inflation due to its depreciating currency, according to Nomura Global Markets Research.\n\u201c(I)nflation is already above central bank targets in four economies (India, South Korea, the Philippines and Thailand), all of which have sufficient (foreign exchange) reserve buffers to smoothen the pace of depreciation, but this would mean faster domestic liquidity withdrawals (India falls in this camp) or even higher inflation, if they allow the currency to adjust (the Philippines and Thailand), which could nudge these central banks even closer to policy exit, in our view,\u201d Nomura said in a note on Monday.\u00a0\nThe report, issued by research analysts Sonal Varma, Ting Lu, Euben Paracuelles, and Jeongwoo Park, classified the Philippines, along with Thailand and Indonesia, as economies experiencing \u201cwarm\u201d inflation.\nThe analysts assessed inflation by looking at the trimmed mean and weighted median consumer price index of these economies.\n\u201cFor the ASEAN-3 in the warm inflation bucket, the central banks can afford to be relatively patient for now, but we expect most to pivot in the coming months due to either rising inflation, fiscal or balance of payment risks,\u201d it said.\nHeadline inflation in the Philippines rose to a three-year high of 4.9% in April. This reflected the impact of the Russia-Ukraine war on food, transport and utilities.\nThe central bank expects inflation to hit 4.3% this year, above its 2-4% target range, amid rising oil and commodity prices.\nNomura said currency weakness could worsen imported inflation risk at a time of already elevated commodity prices and supply chain disruptions.\nClosing at P52.493 to the dollar on Monday, the peso is down by 2.9% from its level at the end of 2021.\nPhilippine dollar reserves totaled $106.75 billion at the end of April. This is equivalent to 9.4 months\u2019 worth of imports of goods and payments of services and primary income.\nThe Monetary Board will convene for its third rate-setting of the year on May 19. \u2014 Luz Wendy T. Noble", "date_published": "2022-05-16T20:01:21+08:00", "date_modified": "2022-05-16T20:01:21+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/09/vegetables-market.jpg", "tags": [ "Luz Wendy T. Noble", "Economy", "Editors' Picks" ], "summary": "THE PHILIPPINES is among those economies exposed to a heightened risk of imported inflation due to its depreciating currency, according to Nomura Global Markets Research.\u00a0" }, { "id": "/?p=448523", "url": "/top-stories/2022/05/16/448523/analysts-divided-on-rate-hike-move/", "title": "Analysts divided on rate hike move", "content_html": "By Luz Wendy T. Noble, Reporter
\nTHE BANGKO SENTRAL ng Pilipinas (BSP) could still keep rates steady on Thursday as it waits for more proof of a robust economic recovery, although some analysts said a rate hike is likely after the strong first-quarter print.
\nA 大象传媒 poll of 17 analysts conducted last week showed they are divided on the BSP\u2019s next move, with nine betting rates will remain unchanged, while eight are expecting a 25-basis-point (bp) hike.
\nThe Monetary Board will hold its third rate-setting meeting for the year on Thursday. The key policy rate has been at a record low 2% since November 2020, when the BSP cut rates by 25 bps.
\n![\"Analysts\u2019](\"https://live.staticflickr.com/65535/52074694831_6be88831d2_o.jpg\")
Some analysts believe that interest rates will remain untouched on Thursday to buy more time for the BSP to sift through data and ascertain if economic recovery has become entrenched.
\n\u201cWe believe that the BSP will not change the policy rate during its May 19 Monetary Board meeting as it is too close to the recent elections and they would likely want to digest the first-quarter gross domestic product (GDP) data in more detail,\u201d Philippine National Bank economist Alvin Joseph A. Arogo said.
\nThe Philippine economy expanded by 8.3% in the January to March period, a turnaround from the 3.8% contraction in the same period of 2021. The first-quarter GDP growth was faster than the 7.8% growth in the October to December period.
\nDespite the stronger-than-expected GDP growth in the first quarter, China Banking Corp. Chief Economist Domini S. Velasquez said there are still some economic indicators that showed some sectors have yet to recover from the pandemic.
\n\u201cLooking at other leading indicators, consumer loans have only posted positive growth rates for two months; imports of durable or nonessential goods have slowed down; unemployment is back to pre-pandemic lows but recent gains in employment came from agriculture, likely due to government programs to create jobs during the pandemic; and underemployment rate remains quite high, which may indicate insufficient income for some,\u201d Ms. Velasquez said in an e-mail.
\nShe noted faster inflation could also eventually affect household consumption. Household spending makes up about three-fourths of the economy.
\nThe BSP will likely wait for its next policy review and go for a 50-bp rate hike, said Ser Percival K. Pe\u00f1a-Reyes, associate director at the Ateneo de Manila University Center for Economic Research and Development.
\nHe said the BSP now has to deal with increasing interest rate differentials that could attract funds back to the United States due to the Federal Reserve\u2019s monetary policy tightening, which in turn would affect the peso\u2019s strength.\u00a0
\n\u201cThis could significantly affect our trade, which depends heavily on imports,\u201d he said.
\nThe Fed has already increased policy rates by 75 bps through a 25-rate hike in March and another 50 bps earlier this month.
\nThe peso closed at P52.45 against the US dollar on Friday, already 2.8% weaker from its P50.999 close in 2021.\u00a0\u00a0
\nCASE FOR RATE HIKE
\nMeanwhile, some analysts believe the available economic data are enough for the BSP to prove that it can gradually withdraw support by raising interest rates.
\u201cThe most important change is that with GDP level now surpassing pre-pandemic levels, the BSP can focus squarely on tackling inflationary pressures. We further think that a total of 150 bps of rate hikes will be delivered this year,\u201d ANZ Research Chief Economist for Southeast Asia and India Sanjay Mathur said.
\nSocioeconomic Planning Secretary Karl Kendrick T. Chua on Thursday has confirmed that Philippine GDP level is already beyond where it was in 2019, before the crisis. At constant 2018 prices, the size of the Philippine economy in the first quarter was valued at P4.618 trillion, already beyond the P4.463 trillion in the first three months of 2019.
\nEconomic managers previously expected the economy will reach its pre-pandemic level only by the second half of 2022.
\nHeadline inflation accelerated to a three-year high of 4.9% in April, reflecting the faster increase in food, utilities, and transport prices. This is already beyond the central bank\u2019s 2-4% target range.
\nLast month, BSP Governor Benjamin E. Diokno said they may consider a rate hike in June. At that time, he said there is still no evidence of second-round effects from the demand side reflected by wage or fare hikes.
\nThe Department of Labor and Employment this Saturday approved a P33 increase for the daily minimum wage in Metro Manila and by P55 to P110 for the Western Visayas Region. Meanwhile, several transport groups have also filed petitions to raise fares as pump prices continue to climb.
\nBank of the Philippine Islands Lead Economist Emilio S. Neri, Jr. said economic recovery indicators reflect how monetary policy response is \u201calready late.\u201d
\n\u201cAside from credibility risk, the direct cost of avoiding a rate hike such expensive non-monetary measures (foregone revenues from lower tariffs, direct subsidies, direct imports of fish) are piling up and may be better allocated to other program priorities like education, health, etc,\u201d Mr. Neri said.
\n\u201cA May 19 hike also helps reduce speculation that all the consequences of rate hikes are being passed on to the new administration,\u201d he added.
\nThe BSP may also be looking at recent moves by its regional counterparts, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said.
\n\u201cThe likelihood of a hike this May is higher (50%+ higher) because of hotter-than-expected 1Q22 GDP growth print. BSP may also be looking at the signs on the wall from regional moves lately,\u201d he said.
\nLast week, Bank Negara Malaysia in a surprise move raised its key policy rate by 25 basis points, as it tries to tame inflation. Singapore also tightened its monetary policy last month, while Indonesia and Thailand maintained rate settings.
\nAt its March 24 meeting, the BSP raised its inflation forecast to a beyond-target 4.3% for 2022, factoring in the impact of the Russia-Ukraine war on commodity prices. It kept rates steady, citing the need to keep support to economic recovery.
\nA rate hike would be the first since 2018, when the central bank increased rates by 175 bps to curb inflation.
\n", "content_text": "By Luz Wendy T. Noble, Reporter\nTHE BANGKO SENTRAL ng Pilipinas (BSP) could still keep rates steady on Thursday as it waits for more proof of a robust economic recovery, although some analysts said a rate hike is likely after the strong first-quarter print. \nA 大象传媒 poll of 17 analysts conducted last week showed they are divided on the BSP\u2019s next move, with nine betting rates will remain unchanged, while eight are expecting a 25-basis-point (bp) hike.\nThe Monetary Board will hold its third rate-setting meeting for the year on Thursday. The key policy rate has been at a record low 2% since November 2020, when the BSP cut rates by 25 bps.\n\nSome analysts believe that interest rates will remain untouched on Thursday to buy more time for the BSP to sift through data and ascertain if economic recovery has become entrenched.\n\u201cWe believe that the BSP will not change the policy rate during its May 19 Monetary Board meeting as it is too close to the recent elections and they would likely want to digest the first-quarter gross domestic product (GDP) data in more detail,\u201d Philippine National Bank economist Alvin Joseph A. Arogo said. \nThe Philippine economy expanded by 8.3% in the January to March period, a turnaround from the 3.8% contraction in the same period of 2021. The first-quarter GDP growth was faster than the 7.8% growth in the October to December period.\nDespite the stronger-than-expected GDP growth in the first quarter, China Banking Corp. Chief Economist Domini S. Velasquez said there are still some economic indicators that showed some sectors have yet to recover from the pandemic.\n\u201cLooking at other leading indicators, consumer loans have only posted positive growth rates for two months; imports of durable or nonessential goods have slowed down; unemployment is back to pre-pandemic lows but recent gains in employment came from agriculture, likely due to government programs to create jobs during the pandemic; and underemployment rate remains quite high, which may indicate insufficient income for some,\u201d Ms. Velasquez said in an e-mail. \nShe noted faster inflation could also eventually affect household consumption. Household spending makes up about three-fourths of the economy.\nThe BSP will likely wait for its next policy review and go for a 50-bp rate hike, said Ser Percival K. Pe\u00f1a-Reyes, associate director at the Ateneo de Manila University Center for Economic Research and Development.\nHe said the BSP now has to deal with increasing interest rate differentials that could attract funds back to the United States due to the Federal Reserve\u2019s monetary policy tightening, which in turn would affect the peso\u2019s strength.\u00a0\n\u201cThis could significantly affect our trade, which depends heavily on imports,\u201d he said.\nThe Fed has already increased policy rates by 75 bps through a 25-rate hike in March and another 50 bps earlier this month.\nThe peso closed at P52.45 against the US dollar on Friday, already 2.8% weaker from its P50.999 close in 2021.\u00a0\u00a0\nCASE FOR RATE HIKE\nMeanwhile, some analysts believe the available economic data are enough for the BSP to prove that it can gradually withdraw support by raising interest rates.\n\u201cThe most important change is that with GDP level now surpassing pre-pandemic levels, the BSP can focus squarely on tackling inflationary pressures. We further think that a total of 150 bps of rate hikes will be delivered this year,\u201d ANZ Research Chief Economist for Southeast Asia and India Sanjay Mathur said.\nSocioeconomic Planning Secretary Karl Kendrick T. Chua on Thursday has confirmed that Philippine GDP level is already beyond where it was in 2019, before the crisis. At constant 2018 prices, the size of the Philippine economy in the first quarter was valued at P4.618 trillion, already beyond the P4.463 trillion in the first three months of 2019.\nEconomic managers previously expected the economy will reach its pre-pandemic level only by the second half of 2022.\nHeadline inflation accelerated to a three-year high of 4.9% in April, reflecting the faster increase in food, utilities, and transport prices. This is already beyond the central bank\u2019s 2-4% target range. \nLast month, BSP Governor Benjamin E. Diokno said they may consider a rate hike in June. At that time, he said there is still no evidence of second-round effects from the demand side reflected by wage or fare hikes.\nThe Department of Labor and Employment this Saturday approved a P33 increase for the daily minimum wage in Metro Manila and by P55 to P110 for the Western Visayas Region. Meanwhile, several transport groups have also filed petitions to raise fares as pump prices continue to climb. \nBank of the Philippine Islands Lead Economist Emilio S. Neri, Jr. said economic recovery indicators reflect how monetary policy response is \u201calready late.\u201d\n\u201cAside from credibility risk, the direct cost of avoiding a rate hike such expensive non-monetary measures (foregone revenues from lower tariffs, direct subsidies, direct imports of fish) are piling up and may be better allocated to other program priorities like education, health, etc,\u201d Mr. Neri said.\n\u201cA May 19 hike also helps reduce speculation that all the consequences of rate hikes are being passed on to the new administration,\u201d he added.\nThe BSP may also be looking at recent moves by its regional counterparts, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said.\n\u201cThe likelihood of a hike this May is higher (50%+ higher) because of hotter-than-expected 1Q22 GDP growth print. BSP may also be looking at the signs on the wall from regional moves lately,\u201d he said.\nLast week, Bank Negara Malaysia in a surprise move raised its key policy rate by 25 basis points, as it tries to tame inflation. Singapore also tightened its monetary policy last month, while Indonesia and Thailand maintained rate settings. \nAt its March 24 meeting, the BSP raised its inflation forecast to a beyond-target 4.3% for 2022, factoring in the impact of the Russia-Ukraine war on commodity prices. It kept rates steady, citing the need to keep support to economic recovery.\nA rate hike would be the first since 2018, when the central bank increased rates by 175 bps to curb inflation.", "date_published": "2022-05-16T00:33:52+08:00", "date_modified": "2022-05-15T19:13:28+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2022/05/fuel-gas-station-worker-2.jpg", "tags": [ "Luz Wendy T. Noble", "Editors' Picks", "大象传媒" ], "summary": "THE BANGKO SENTRAL ng Pilipinas (BSP) could still keep rates steady on Thursday as it waits for more proof of a robust economic recovery, although some analysts said a rate hike is likely after the strong first-quarter print." }, { "id": "/?p=448522", "url": "/top-stories/2022/05/16/448522/msmes-may-struggle-to-raise-wages/", "title": "MSMEs may struggle to raise wages", "content_html": "By Tobias Jared Tomas
\nMICRO, SMALL AND MEDIUM enterprises (MSMEs) may face difficulty in complying with the recently approved wage hikes in Metro Manila and Western Visayas as many businesses have yet to fully recover from the pandemic, industry groups said.
\nAnalysts, on the other hand, said the wage hike may cause faster inflation.
\n\u201cMy concern is many MSMEs are having challenges with the present legislated wage, this increase will add burden to their precarious financial condition,\u201d Philippine Chamber of Commerce and Industry (PCCI) President George T. Barcelon said via Viber.
\nHe said this may lead more MSMEs to trim their workforce and raise prices of goods and services.
\nMany MSMEs, who represent 99% of enterprises in the Philippines, are still struggling to recover from the pandemic.
\nThe Department of Labor and Employment on Saturday approved a P33 increase for the daily minimum wage in Metro Manila and by P55 to P110 for the Western Visayas Region.
\nThe wage hike in Metro Manila will bring the new minimum wage in the capital region to P570 and P533 for workers in non-agricultural and agricultural sectors, respectively. It is expected to cover around one million minimum wage earners.
\nMeanwhile, P55 and P110 increases in Western Visayas bring the daily minimum wage in the region to P450 for businesses employing more than 10 workers, and P420 for establishments employing 10 or less workers.
\nEmployers Confederation of the Philippines (ECoP) President Sergio R. Ortiz-Luis, Jr. said in a phone call that he hoped micro industries, which are businesses made up of less than 10 employees, would be exempt from the wage hike.
\n\u201cMany businesses are not opening because of the expected wage increase,\u201d Mr. Ortiz-Luis, Jr. said in mixed Filipino and English. \u201cLarger companies might be able to afford it (wage increase), but micro companies might not.\u201d
\nManagement Association of the Philippines (MAP) President Alfredo E. Pascual said he recognizes the need to raise the minimum wage as prices of basic commodities have continued to rise.
\n\u201cThe increased minimum wages will put more pressure on small businesses, particularly those still in difficulty recovering from the pandemic. The increased wage burden should not result in business closures and job losses,\u201d he said via mobile message, adding that the government may need to assist struggling small businesses in dealing with higher personnel costs.
\nFederation of Filipino Chinese Chambers of Commerce & Industry, Inc. President Henry Lim Bon Liong said in a DZBB radio interview that they would have to follow the law, but it will be difficult as businesses are still recovering from the lockdowns in the last two years.
\n\u201cMany establishments and MSMEs are having a hard time, but I think we will try to manage,\u201d he said.
\nSought for a comment, Danilo C. Lachica, president of the Semiconductor and Electronics Industries in the Philippines Foundation, Inc., said the industry will follow the law regarding wages.
\nLabor group Partido Manggagawa (PM) in a statement on Sunday opposed the move of some industry groups to be exempted from the wage hike.
\n\u201cIt is adding insult to injury to workers for the regional wage boards to exempt and defer the wage hike as demanded by employers,\u201d PM Chairman Rene Magtubo was quoted as saying. \u201cThe minimum wage increases are not even enough to recover the value lost to inflation for the past three years. If the hikes are deferred and employers exempted, then the most vulnerable workers are left with nothing.\u201d
\nPM earlier called for a P100 minimum wage hike.
\nPM said that a P33 increase for MSMEs with 10 workers would only incur an additional P8,580 in monthly labor expenses, a mere 0.3% of their P3-million asset size.
\n\u201cThis will definitely not bankrupt an MSME. But a lack of market because of low consumption will kill an MSME,\u201d Mr. Magtubo said.
\nThe Trade Union Congress of the Philippines said the wage increases granted by the NCR and Region 6 wage boards are \u201ctoo small.\u201d
\n\u201cSuch increases are too small and too insignificant which have no impact on improving the economic situation of workers and their families given the nonstop increases in prices of food and services,\u201d it said. \u201cThe wage boards did not reckon with April inflation of 4.9% and the projected inflation of 5.5% come June.\u201d
\nINFLATION IMPACT
\nBangko Sentral ng Pilipinas Governor Benjamin E. Diokno said in a Viber message that the Monetary Board will consider the wage hike in its policy meeting on Thursday.
He earlier said they will continue to monitor second-round effects that may be reflected by wage and transport fare hikes.
\n\u201cLet\u2019s expect more upward pressure on inflation. These are clear second-round effects at work,\u201d UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in a Viber message.
\n\u201cFor this year, we are already expecting an inflation average for 2022 of 4.7%. So, reaching the target of 2-4% is out of the question and puts hiking key interest rates as paramount for the BSP,\u201d he added.
\nRizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said wage hikes could mean inflation estimates will be raised further.
\n\u201cThis could lay the groundwork in justifying any possible hike in local policy rates, after the stronger-than-expected gross domestic product data that suggests that the local economy is relatively stronger enough to weather any further policy rate hikes,\u201d Mr. Ricafort said in a Viber message.
\nThe BSP increased its inflation estimate for 2022 to 4.3% in March, citing the impact of the war in Ukraine to oil and commodity prices. However, it kept rates steady at that meeting as it stressed the need to continue supporting the recovering economy. \u2014 with Luz Wendy T. Noble and Kyle Aristophere T. Atienza
\n", "content_text": "By Tobias Jared Tomas\nMICRO, SMALL AND MEDIUM enterprises (MSMEs) may face difficulty in complying with the recently approved wage hikes in Metro Manila and Western Visayas as many businesses have yet to fully recover from the pandemic, industry groups said.\nAnalysts, on the other hand, said the wage hike may cause faster inflation.\n\u201cMy concern is many MSMEs are having challenges with the present legislated wage, this increase will add burden to their precarious financial condition,\u201d Philippine Chamber of Commerce and Industry (PCCI) President George T. Barcelon said via Viber.\nHe said this may lead more MSMEs to trim their workforce and raise prices of goods and services. \nMany MSMEs, who represent 99% of enterprises in the Philippines, are still struggling to recover from the pandemic.\nThe Department of Labor and Employment on Saturday approved a P33 increase for the daily minimum wage in Metro Manila and by P55 to P110 for the Western Visayas Region.\nThe wage hike in Metro Manila will bring the new minimum wage in the capital region to P570 and P533 for workers in non-agricultural and agricultural sectors, respectively. It is expected to cover around one million minimum wage earners. \nMeanwhile, P55 and P110 increases in Western Visayas bring the daily minimum wage in the region to P450 for businesses employing more than 10 workers, and P420 for establishments employing 10 or less workers.\nEmployers Confederation of the Philippines (ECoP) President Sergio R. Ortiz-Luis, Jr. said in a phone call that he hoped micro industries, which are businesses made up of less than 10 employees, would be exempt from the wage hike.\n\u201cMany businesses are not opening because of the expected wage increase,\u201d Mr. Ortiz-Luis, Jr. said in mixed Filipino and English. \u201cLarger companies might be able to afford it (wage increase), but micro companies might not.\u201d\nManagement Association of the Philippines (MAP) President Alfredo E. Pascual said he recognizes the need to raise the minimum wage as prices of basic commodities have continued to rise.\n\u201cThe increased minimum wages will put more pressure on small businesses, particularly those still in difficulty recovering from the pandemic. The increased wage burden should not result in business closures and job losses,\u201d he said via mobile message, adding that the government may need to assist struggling small businesses in dealing with higher personnel costs.\nFederation of Filipino Chinese Chambers of Commerce & Industry, Inc. President Henry Lim Bon Liong said in a DZBB radio interview that they would have to follow the law, but it will be difficult as businesses are still recovering from the lockdowns in the last two years.\n\u201cMany establishments and MSMEs are having a hard time, but I think we will try to manage,\u201d he said.\nSought for a comment, Danilo C. Lachica, president of the Semiconductor and Electronics Industries in the Philippines Foundation, Inc., said the industry will follow the law regarding wages.\nLabor group Partido Manggagawa (PM) in a statement on Sunday opposed the move of some industry groups to be exempted from the wage hike.\n\u201cIt is adding insult to injury to workers for the regional wage boards to exempt and defer the wage hike as demanded by employers,\u201d PM Chairman Rene Magtubo was quoted as saying. \u201cThe minimum wage increases are not even enough to recover the value lost to inflation for the past three years. If the hikes are deferred and employers exempted, then the most vulnerable workers are left with nothing.\u201d\nPM earlier called for a P100 minimum wage hike.\nPM said that a P33 increase for MSMEs with 10 workers would only incur an additional P8,580 in monthly labor expenses, a mere 0.3% of their P3-million asset size.\n\u201cThis will definitely not bankrupt an MSME. But a lack of market because of low consumption will kill an MSME,\u201d Mr. Magtubo said.\nThe Trade Union Congress of the Philippines said the wage increases granted by the NCR and Region 6 wage boards are \u201ctoo small.\u201d\n\u201cSuch increases are too small and too insignificant which have no impact on improving the economic situation of workers and their families given the nonstop increases in prices of food and services,\u201d it said. \u201cThe wage boards did not reckon with April inflation of 4.9% and the projected inflation of 5.5% come June.\u201d\nINFLATION IMPACT\nBangko Sentral ng Pilipinas Governor Benjamin E. Diokno said in a Viber message that the Monetary Board will consider the wage hike in its policy meeting on Thursday.\nHe earlier said they will continue to monitor second-round effects that may be reflected by wage and transport fare hikes.\n\u201cLet\u2019s expect more upward pressure on inflation. These are clear second-round effects at work,\u201d UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in a Viber message.\n\u201cFor this year, we are already expecting an inflation average for 2022 of 4.7%. So, reaching the target of 2-4% is out of the question and puts hiking key interest rates as paramount for the BSP,\u201d he added.\nRizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said wage hikes could mean inflation estimates will be raised further.\n\u201cThis could lay the groundwork in justifying any possible hike in local policy rates, after the stronger-than-expected gross domestic product data that suggests that the local economy is relatively stronger enough to weather any further policy rate hikes,\u201d Mr. Ricafort said in a Viber message.\nThe BSP increased its inflation estimate for 2022 to 4.3% in March, citing the impact of the war in Ukraine to oil and commodity prices. However, it kept rates steady at that meeting as it stressed the need to continue supporting the recovering economy. \u2014 with Luz Wendy T. Noble and Kyle Aristophere T. Atienza", "date_published": "2022-05-16T00:32:52+08:00", "date_modified": "2022-05-15T19:02:20+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2022/05/Mural-man.jpg", "tags": [ "Featured2", "Kyle Aristophere T. Atienza", "Luz Wendy T. Noble", "Tobias Jared Tomas", "Editors' Picks", "大象传媒" ], "summary": "MICRO, SMALL AND MEDIUM enterprises (MSMEs) may face difficulty in complying with the recently approved wage hikes in Metro Manila and Western Visayas as many businesses have yet to fully recover from the pandemic, industry groups said." }, { "id": "/?p=448464", "url": "/banking-finance/2022/05/16/448464/peso-may-rise-on-remittance-data/", "title": "Peso may rise on remittance data", "content_html": "![\"\"](\"/wp-content/uploads/2022/03/peso-coins.jpg\")
THE PESO may appreciate further versus the dollar this week in anticipation of strong remittance data, but risk-off sentiment may be seen as the market awaits clearer economic plans from the next administration.
\nThe local unit closed at P52.45 per dollar on Friday, gaining 4.5 centavos from its P52.495 finish on Thursday, based on Bankers Association of the Philippines data.
\nIt also strengthened by 31 centavos from its P52.19 finish a week earlier.
\nThe peso opened Friday\u2019s session at P52.43 against the dollar. Its weakest showing was at P52.48, while its intraday best was at P52.39 versus the greenback.
\nDollars exchanged declined to $978.4 million on Friday from $1.08 billion on Thursday.
\nThe peso strengthened versus the dollar on Friday following stronger-than-expected economic growth in the first quarter, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
\nPhilippine gross domestic product (GDP) expanded by a better-than-expected 8.3% in the first quarter, the Philippine Statistics Authority reported on Thursday. This is a turnaround from the 3.8% contraction in the same period of 2021 and faster than the 7.8% growth in the October to December period.
\nSocioeconomic Planning Secretary Karl Kendrick T. Chua said the first-quarter growth print has surpassed the pre-pandemic GDP level. Economic managers had expected this rebound to happen in the second half of the year.
\nMeanwhile, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in an e-mail that the market also factored in hawkish signals from the US Federal Reserve.
\nLast week, Federal Reserve Bank of Atlanta President Raphael Bostic said they may consider bigger moves in increasing interest rates to manage growth if inflation remains persistently elevated, Bloomberg reported.
\n\u201cIf inflation stays at high levels or levels that are too high \u2014 by too high, it\u2019s really not moving back towards our 2% target \u2014 then I am going to be supporting moving more,\u201d Mr. Bostic said.
\nFor this week, Mr. Ricafort said the market will monitor March remittance data expected to be released on Monday, May 16.
\nCash remittances increased in February by 1.3% to $2.509 billion, but this was the slowest pace in 13 months. Analysts said this reflected the impact of rising infections in many host countries.
\nMr. Ricafort said the central bank\u2019s policy-setting meeting on Thursday may also affect peso-dollar trading.
\nA 大象传媒 poll held last week showed 9 out of 17 analysts expect the central bank to keep its key rates at record lows, while eight see a possibility of a 25-basis-point (bp) rate hike at the BSP\u2019s meeting.
\nA slim majority of analysts said the BSP may choose to hold fire as it waits for more evidence that economic recovery is already entrenched, while some are pricing in a rate increase due to stronger-than-expected first-quarter growth that could further stoke inflation.
\nThe central bank has not touched borrowing costs since slashing rates by a total of 200 bps in 2020.
\nAnother factor that could drive market sentiment this week is clarity on the economic team and plans of the presumptive President-elect Ferdinand R. Marcos, Jr., Mr. Asuncion said.
\nFor this week, Mr. Asuncion gave a forecast range of P52.20 to P52.70, while Mr. Ricafort expects the local unit to move within P52.25 to P52.55 per dollar. \u2014 L.W.T. Noble
\n", "content_text": "THE PESO may strengthen further on expectations of strong March remittances. \u2014 BW FILE PHOTO\nTHE PESO may appreciate further versus the dollar this week in anticipation of strong remittance data, but risk-off sentiment may be seen as the market awaits clearer economic plans from the next administration.\nThe local unit closed at P52.45 per dollar on Friday, gaining 4.5 centavos from its P52.495 finish on Thursday, based on Bankers Association of the Philippines data.\nIt also strengthened by 31 centavos from its P52.19 finish a week earlier.\nThe peso opened Friday\u2019s session at P52.43 against the dollar. Its weakest showing was at P52.48, while its intraday best was at P52.39 versus the greenback.\nDollars exchanged declined to $978.4 million on Friday from $1.08 billion on Thursday.\nThe peso strengthened versus the dollar on Friday following stronger-than-expected economic growth in the first quarter, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.\nPhilippine gross domestic product (GDP) expanded by a better-than-expected 8.3% in the first quarter, the Philippine Statistics Authority reported on Thursday. This is a turnaround from the 3.8% contraction in the same period of 2021 and faster than the 7.8% growth in the October to December period.\nSocioeconomic Planning Secretary Karl Kendrick T. Chua said the first-quarter growth print has surpassed the pre-pandemic GDP level. Economic managers had expected this rebound to happen in the second half of the year.\nMeanwhile, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in an e-mail that the market also factored in hawkish signals from the US Federal Reserve.\nLast week, Federal Reserve Bank of Atlanta President Raphael Bostic said they may consider bigger moves in increasing interest rates to manage growth if inflation remains persistently elevated, Bloomberg reported.\n\u201cIf inflation stays at high levels or levels that are too high \u2014 by too high, it\u2019s really not moving back towards our 2% target \u2014 then I am going to be supporting moving more,\u201d Mr. Bostic said.\nFor this week, Mr. Ricafort said the market will monitor March remittance data expected to be released on Monday, May 16.\nCash remittances increased in February by 1.3% to $2.509 billion, but this was the slowest pace in 13 months. Analysts said this reflected the impact of rising infections in many host countries.\nMr. Ricafort said the central bank\u2019s policy-setting meeting on Thursday may also affect peso-dollar trading.\nA 大象传媒 poll held last week showed 9 out of 17 analysts expect the central bank to keep its key rates at record lows, while eight see a possibility of a 25-basis-point (bp) rate hike at the BSP\u2019s meeting.\nA slim majority of analysts said the BSP may choose to hold fire as it waits for more evidence that economic recovery is already entrenched, while some are pricing in a rate increase due to stronger-than-expected first-quarter growth that could further stoke inflation.\nThe central bank has not touched borrowing costs since slashing rates by a total of 200 bps in 2020.\nAnother factor that could drive market sentiment this week is clarity on the economic team and plans of the presumptive President-elect Ferdinand R. Marcos, Jr., Mr. Asuncion said.\nFor this week, Mr. Asuncion gave a forecast range of P52.20 to P52.70, while Mr. Ricafort expects the local unit to move within P52.25 to P52.55 per dollar. \u2014 L.W.T. Noble", "date_published": "2022-05-16T00:01:42+08:00", "date_modified": "2022-05-15T17:24:19+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2022/03/peso-coins.jpg", "tags": [ "Luz Wendy T. Noble", "Banking & Finance" ], "summary": "THE PESO may appreciate further versus the dollar this week in anticipation of strong remittance data, but risk-off sentiment may be seen as the market awaits clearer economic plans from the next administration." }, { "id": "/?p=448260", "url": "/top-stories/2022/05/13/448260/upbeat-q1-growth-builds-case-for-bsp-rate-hike-by-next-week/", "title": "Upbeat Q1 growth builds case for BSP rate hike by next week", "content_html": "THE PHILIPPINE central bank on Thursday welcomed the faster-than-expected economic growth in the first quarter, with some analysts saying this helps build the case for a rate hike as early as next week.
\nGross domestic product (GDP) expanded by 8.3% in the January to March period, marking the fourth straight quarter of expansion. The latest print beat the 6.7% median estimate in a 大象传媒 poll.
\n\u201c[It] beats our own growth expectation. [We] will consider this positive development together with the improving jobs market in our policy meeting next week,\u201d Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said in a Viber message to 大象传媒.
\nThe Monetary Board will have its next policy meeting on May 19.
\nMr. Diokno said in late April that they may consider a rate hike in June, but will first ensure that economic recovery is more entrenched.
\n\u201cFor our part, the BSP stands ready to adjust our monetary policy settings, should we see material risk of these supply-side pressures spilling over to the demand side,\u201d he told reporters in a Viber message.
\nHeadline inflation accelerated to a three-year high of 4.9% in April due to soaring food and energy prices. This is already above the 2-4% target range set by the central bank.
\nThe central bank expects inflation to hit 4.3% this year. If realized, this would mark the second straight year of beyond target inflation after the 4.5% in 2021.
\nING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said the latest economic data comes at a time when the central bank is also facing concerns over rising prices with inflation already beyond target.
\n\u201cBSP Governor Diokno has been keeping rates unchanged to help support the economic recovery. But with GDP now back to pre-COVID-19 levels and with inflation accelerating, we fully expect BSP to hike policy rates at the May 19 meeting next week,\u201d Mr. Mapa said in a note.\u00a0
\nAmid improving growth, economic managers still have to face one of the fastest inflation rates in the Asia-Pacific region, said Sonia Zhu, an analyst at Moody\u2019s Analytics.
\n\u201cA June rate hike is highly likely as broad-based growth is taking hold. However, with BSP under increasing pressure to arrest rising inflation pressures, we would not be surprised by a rate hike in May,\u201d Ms. Zhu said in a note.
\nAs the Philippines grapples with rising inflation, Fitch Ratings said it expects the BSP to start increasing interest rates in the second half of the year.
\nThe BSP has maintained interest rates at a record low since November 2020 to support the Philippine economy\u2019s recovery from the pandemic.
\nA rate hike would be the first since 2018, when the central bank increased rates by 175 bps to curb inflation. \u2014 Luz Wendy T. Noble
\n", "content_text": "THE PHILIPPINE central bank on Thursday welcomed the faster-than-expected economic growth in the first quarter, with some analysts saying this helps build the case for a rate hike as early as next week.\nGross domestic product (GDP) expanded by 8.3% in the January to March period, marking the fourth straight quarter of expansion. The latest print beat the 6.7% median estimate in a 大象传媒 poll.\n\u201c[It] beats our own growth expectation. [We] will consider this positive development together with the improving jobs market in our policy meeting next week,\u201d Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said in a Viber message to 大象传媒. \nThe Monetary Board will have its next policy meeting on May 19.\nMr. Diokno said in late April that they may consider a rate hike in June, but will first ensure that economic recovery is more entrenched.\n\u201cFor our part, the BSP stands ready to adjust our monetary policy settings, should we see material risk of these supply-side pressures spilling over to the demand side,\u201d he told reporters in a Viber message.\nHeadline inflation accelerated to a three-year high of 4.9% in April due to soaring food and energy prices. This is already above the 2-4% target range set by the central bank.\nThe central bank expects inflation to hit 4.3% this year. If realized, this would mark the second straight year of beyond target inflation after the 4.5% in 2021.\nING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said the latest economic data comes at a time when the central bank is also facing concerns over rising prices with inflation already beyond target.\n\u201cBSP Governor Diokno has been keeping rates unchanged to help support the economic recovery. But with GDP now back to pre-COVID-19 levels and with inflation accelerating, we fully expect BSP to hike policy rates at the May 19 meeting next week,\u201d Mr. Mapa said in a note.\u00a0\nAmid improving growth, economic managers still have to face one of the fastest inflation rates in the Asia-Pacific region, said Sonia Zhu, an analyst at Moody\u2019s Analytics.\n\u201cA June rate hike is highly likely as broad-based growth is taking hold. However, with BSP under increasing pressure to arrest rising inflation pressures, we would not be surprised by a rate hike in May,\u201d Ms. Zhu said in a note.\nAs the Philippines grapples with rising inflation, Fitch Ratings said it expects the BSP to start increasing interest rates in the second half of the year.\nThe BSP has maintained interest rates at a record low since November 2020 to support the Philippine economy\u2019s recovery from the pandemic.\nA rate hike would be the first since 2018, when the central bank increased rates by 175 bps to curb inflation. \u2014 Luz Wendy T. Noble", "date_published": "2022-05-13T00:33:14+08:00", "date_modified": "2022-05-12T21:05:22+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/11/BSP.jpg", "tags": [ "Featured2", "Luz Wendy T. Noble", "Editors' Picks", "大象传媒" ], "summary": "THE PHILIPPINE central bank on Thursday welcomed the faster-than-expected economic growth in the first quarter, with some analysts saying this helps build the case for a rate hike as early as next week." }, { "id": "/?p=448258", "url": "/top-stories/2022/05/13/448258/incoming-administration-needs-to-ensure-investment-efficiency-fitch/", "title": "Incoming administration needs to ensure \u2018investment efficiency\u2019 \u2014 Fitch", "content_html": "![\"\"](\"/wp-content/uploads/2022/05/Marcos.jpg\")
A CONTINUED FOCUS on infrastructure under the next administration will help drive post-pandemic growth recovery, but the next administration should ensure it will continue governance standards and debt management, Fitch Ratings said.
\nUnder a government led by Ferdinand R. Marcos, Jr., investments that will address infrastructure gap in the Philippines could help offset pandemic scarring on the economy, the debt watcher said in a note on Thursday.
\nFitch said it expects the Marcos administration to continue focusing on infrastructure, which is a key element for medium-term growth that supports the country\u2019s investment grade \u201cBBB+\u201d rating.
\n\u201cHowever, investment efficiency is critical. A deterioration of governance standards could, over time, dilute the positive effect of investment on productivity growth,\u201d Fitch Ratings said.
\n\u201cPoorly managed public infrastructure investment could also contribute to government debt rising faster than nominal gross domestic product (GDP) over the medium term, which would pressure the sovereign rating,\u201d it added.
\nThe Philippine economy grew by a stronger-than-expected 8.3% in the first quarter, rebounding from the 3.8% contraction in the same period in 2021, government data showed.
\nData from the Bureau of the Treasury released Thursday showed the country\u2019s debt-to-GDP ratio expanded to 63.5% as of end-March from 60.4% as of end-2021. (Related story)
\nThis is already beyond the 60% threshold considered as manageable by multilateral lenders for developing economies.
\n\u201cOur baseline assumption is for the Philippines to continue with its sound policy framework and return to strong medium-term growth following the coronavirus disease 2019 (COVID-19) pandemic, but the Negative Outlook on the Philippines\u2019 rating, which we affirmed in February 2022, reflects the uncertainty around this outcome, as well as possible challenges in bringing down government debt after the pandemic policy response,\u201d Fitch said.
\nOn the fiscal side, the debt watcher noted some risks arising from the implementation of the Supreme Court ruling that expands the local government units\u2019 (LGU) share of the National Government revenue this year.
\n\u201cPoor execution could lead to underspending by local governments. If this adversely affects medium-term growth potential, the net credit effects are likely to be negative, even though public finances may improve in the near term,\u201d Fitch said.
\nThe ratings agency also warned a reversal in tax reforms could heighten the possibility of a ratings downgrade.
\n\u201cIf the new administration amends the Rice Tariffication Law, as it suggested during its campaign, this could curb rice imports and push up the cost of rice. Amending the law could also hurt tax revenue,\u201d Fitch said.
\n\u201cThe low tax take is a credit weakness for the Philippines, and when we affirmed the rating in February, we noted that a reversal of tax reforms that leads to sustained higher fiscal deficits could result in a rating downgrade,\u201d it said.
\n\u2018NEGATIVE PERCEPTION\u2019
\nMeanwhile, economists said foreign investor confidence in the Philippines may remain shaky due to high debt, elevated inflation and uncertainty arising from Mr. Marcos\u2019 lack of clear economic policies.
\u201cIt is unfortunate that because of the Martial Law years and the unresolved ill-gotten wealth issues, Mr. Marcos Jr. may bear the heavy burden of negative investor perception, specifically among the foreign investor community,\u201d UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in an e-mail.
\nLeonardo A. Lanzona, an economics professor at the Ateneo de Manila University, said in a Viber message he \u201cwould not be surprised if more investment firms drop the country in their investment lists.\u201d
\n\u201cGiven the budget constraints we face and the complete silence in all these issues, the efficient allocation of these public goods is unlikely to be accomplished, and the administration will likely repeat the past mistakes. Even the indicated continuity of the Duterte programs is not clear,\u201d Mr. Lanzona said.
\nMeanwhile, a spokesperson for JPMorgan claimed the media \u201cmistakenly reported\u201d it dropped the Philippines to the bottom of its investment list due to the election results.
\n\u201cOur views on the Philippines are driven by long-term global and local macroeconomic fundamentals, and not by election results or outcomes in general,\u201d Patricia Anne Javier-Gutierrez, JPMorgan Philippines head of communications, was quoted as saying in a statement released by Mr. Marcos\u2019 camp.
\n\u201cAs stated in our May 8 Philippine Strategy report, we think the Philippines faces a challenging macroeconomic outlook post 2022 regardless of the outcome of the May 2022 presidential elections,\u201d she said. \u2014 Luz Wendy T. Noble and Tobias Jared Tomas
\n", "content_text": "FERDINAND \u201cBONGBONG\u201d R. MARCOS, JR. is seen during a rally in General Santos City, March 27. \u2014 PHILIPPINE STAR/ KRIZ JOHN ROSALES\nA CONTINUED FOCUS on infrastructure under the next administration will help drive post-pandemic growth recovery, but the next administration should ensure it will continue governance standards and debt management, Fitch Ratings said.\nUnder a government led by Ferdinand R. Marcos, Jr., investments that will address infrastructure gap in the Philippines could help offset pandemic scarring on the economy, the debt watcher said in a note on Thursday. \nFitch said it expects the Marcos administration to continue focusing on infrastructure, which is a key element for medium-term growth that supports the country\u2019s investment grade \u201cBBB+\u201d rating.\n\u201cHowever, investment efficiency is critical. A deterioration of governance standards could, over time, dilute the positive effect of investment on productivity growth,\u201d Fitch Ratings said.\n\u201cPoorly managed public infrastructure investment could also contribute to government debt rising faster than nominal gross domestic product (GDP) over the medium term, which would pressure the sovereign rating,\u201d it added.\nThe Philippine economy grew by a stronger-than-expected 8.3% in the first quarter, rebounding from the 3.8% contraction in the same period in 2021, government data showed.\nData from the Bureau of the Treasury released Thursday showed the country\u2019s debt-to-GDP ratio expanded to 63.5% as of end-March from 60.4% as of end-2021. (Related story)\nThis is already beyond the 60% threshold considered as manageable by multilateral lenders for developing economies.\n\u201cOur baseline assumption is for the Philippines to continue with its sound policy framework and return to strong medium-term growth following the coronavirus disease 2019 (COVID-19) pandemic, but the Negative Outlook on the Philippines\u2019 rating, which we affirmed in February 2022, reflects the uncertainty around this outcome, as well as possible challenges in bringing down government debt after the pandemic policy response,\u201d Fitch said. \nOn the fiscal side, the debt watcher noted some risks arising from the implementation of the Supreme Court ruling that expands the local government units\u2019 (LGU) share of the National Government revenue this year.\n\u201cPoor execution could lead to underspending by local governments. If this adversely affects medium-term growth potential, the net credit effects are likely to be negative, even though public finances may improve in the near term,\u201d Fitch said. \nThe ratings agency also warned a reversal in tax reforms could heighten the possibility of a ratings downgrade.\n\u201cIf the new administration amends the Rice Tariffication Law, as it suggested during its campaign, this could curb rice imports and push up the cost of rice. Amending the law could also hurt tax revenue,\u201d Fitch said.\n\u201cThe low tax take is a credit weakness for the Philippines, and when we affirmed the rating in February, we noted that a reversal of tax reforms that leads to sustained higher fiscal deficits could result in a rating downgrade,\u201d it said.\n\u2018NEGATIVE PERCEPTION\u2019\nMeanwhile, economists said foreign investor confidence in the Philippines may remain shaky due to high debt, elevated inflation and uncertainty arising from Mr. Marcos\u2019 lack of clear economic policies.\n\u201cIt is unfortunate that because of the Martial Law years and the unresolved ill-gotten wealth issues, Mr. Marcos Jr. may bear the heavy burden of negative investor perception, specifically among the foreign investor community,\u201d UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in an e-mail.\nLeonardo A. Lanzona, an economics professor at the Ateneo de Manila University, said in a Viber message he \u201cwould not be surprised if more investment firms drop the country in their investment lists.\u201d\n\u201cGiven the budget constraints we face and the complete silence in all these issues, the efficient allocation of these public goods is unlikely to be accomplished, and the administration will likely repeat the past mistakes. Even the indicated continuity of the Duterte programs is not clear,\u201d Mr. Lanzona said.\nMeanwhile, a spokesperson for JPMorgan claimed the media \u201cmistakenly reported\u201d it dropped the Philippines to the bottom of its investment list due to the election results.\n\u201cOur views on the Philippines are driven by long-term global and local macroeconomic fundamentals, and not by election results or outcomes in general,\u201d Patricia Anne Javier-Gutierrez, JPMorgan Philippines head of communications, was quoted as saying in a statement released by Mr. Marcos\u2019 camp.\n\u201cAs stated in our May 8 Philippine Strategy report, we think the Philippines faces a challenging macroeconomic outlook post 2022 regardless of the outcome of the May 2022 presidential elections,\u201d she said. \u2014 Luz Wendy T. Noble and Tobias Jared Tomas", "date_published": "2022-05-13T00:31:13+08:00", "date_modified": "2022-05-12T21:24:32+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2022/05/Marcos.jpg", "tags": [ "Luz Wendy T. Noble", "Tobias Jared Tomas", "大象传媒" ], "summary": "A CONTINUED FOCUS on infrastructure under the next administration will help drive post-pandemic growth recovery, but the next administration should ensure it will continue governance standards and debt management, Fitch Ratings said." }, { "id": "/?p=448146", "url": "/banking-finance/2022/05/13/448146/cyberattacks-on-banks-exploit-human-weaknesses/", "title": "Cyberattacks on banks \u2018exploit human weaknesses\u2019", "content_html": "CYBER INCIDENTS faced by banks take advantage of human weaknesses mostly through fraud, phishing and account takeovers, according to the Bangko Sentral ng Pilipinas (BSP).
\nThe central bank said \u201ccard not present\u201d fraud, variations of phishing, and account takeovers were the three most frequent attacks seen by financial institutions in 2021.
\n\u201cMost of these cyber incidents targeted retail customers, were not highly technical, nor did they require advanced tools. What they tend to do was exploit human weaknesses,\u201d BSP Governor Benjamin E. Diokno said at a virtual briefing on Thursday.
\nMr. Diokno said they noticed that cyberattacks hit two or more financial institutions simultaneously, including originating as well as receiving banks or nonbank service providers.
\n\u201cThe BSP believes that a holistic and coordinated approach among the industry players is necessary to ensure that funds cannot be easily siphoned off by fraudsters and cybercriminals,\u201d Mr. Diokno said.
\nMaricris A. Salud, deputy director at the BSP\u2019s Technology Risk and Innovation Supervision Department, said the cyber incident that affected BDO Unibank, Inc. and caused unauthorized transfers to other financial institutions, including UnionBank of the Philippines, Inc., highlighted the importance of improving bank supervision.
\n\u201cIt only emphasized really the need for supervisory institutions to strengthen their cybersecurity posture and adopting continuing improvements in their cyber risk management and also their AML (anti-money laundering) systems,\u201d Ms. Salud said.
\nBoth BDO and UnionBank were slapped with sanctions due to the incident, which affected more than 700 BDO clients in December. The National Bureau of Investigation earlier said hackers stole about P1.2 million but could have taken more than P50 million if the transactions were not immediately tagged as suspicious.
\nThe BSP in March issued Circular 1140, which requires BSP-supervised financial institutions to implement automated and real-time fraud monitoring and detection systems to identify and block suspicious or fraudulent online transactions.
\nThe Bankers Association of the Philippines earlier said around P1 billion in financial losses were seen in 2021 due to fraud incidents and unauthorized withdrawals experienced by financial consumers. This came amid the increase in digital transactions during the pandemic. \u2014 L.W.T. Noble
\n", "content_text": "CYBER INCIDENTS faced by banks take advantage of human weaknesses mostly through fraud, phishing and account takeovers, according to the Bangko Sentral ng Pilipinas (BSP).\nThe central bank said \u201ccard not present\u201d fraud, variations of phishing, and account takeovers were the three most frequent attacks seen by financial institutions in 2021.\n\u201cMost of these cyber incidents targeted retail customers, were not highly technical, nor did they require advanced tools. What they tend to do was exploit human weaknesses,\u201d BSP Governor Benjamin E. Diokno said at a virtual briefing on Thursday. \nMr. Diokno said they noticed that cyberattacks hit two or more financial institutions simultaneously, including originating as well as receiving banks or nonbank service providers.\n\u201cThe BSP believes that a holistic and coordinated approach among the industry players is necessary to ensure that funds cannot be easily siphoned off by fraudsters and cybercriminals,\u201d Mr. Diokno said.\nMaricris A. Salud, deputy director at the BSP\u2019s Technology Risk and Innovation Supervision Department, said the cyber incident that affected BDO Unibank, Inc. and caused unauthorized transfers to other financial institutions, including UnionBank of the Philippines, Inc., highlighted the importance of improving bank supervision.\n\u201cIt only emphasized really the need for supervisory institutions to strengthen their cybersecurity posture and adopting continuing improvements in their cyber risk management and also their AML (anti-money laundering) systems,\u201d Ms. Salud said.\nBoth BDO and UnionBank were slapped with sanctions due to the incident, which affected more than 700 BDO clients in December. The National Bureau of Investigation earlier said hackers stole about P1.2 million but could have taken more than P50 million if the transactions were not immediately tagged as suspicious.\nThe BSP in March issued Circular 1140, which requires BSP-supervised financial institutions to implement automated and real-time fraud monitoring and detection systems to identify and block suspicious or fraudulent online transactions.\nThe Bankers Association of the Philippines earlier said around P1 billion in financial losses were seen in 2021 due to fraud incidents and unauthorized withdrawals experienced by financial consumers. This came amid the increase in digital transactions during the pandemic. \u2014 L.W.T. Noble", "date_published": "2022-05-13T00:03:25+08:00", "date_modified": "2022-05-12T18:30:06+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2022/05/cybercrime-hacker.jpg", "tags": [ "Luz Wendy T. Noble", "Banking & Finance", "Editors' Picks" ], "summary": "CYBER INCIDENTS faced by banks take advantage of human weaknesses mostly through fraud, phishing and account takeovers, according to the Bangko Sentral ng Pilipinas (BSP)." }, { "id": "/?p=448145", "url": "/banking-finance/2022/05/13/448145/banking-groups-hope-incoming-administration-can-address-economic-risks-industry-concerns/", "title": "Banking groups hope incoming administration can address economic risks, industry concerns", "content_html": "BANKING INDUSTRY GROUPS hope the next administration headed by former Senator Ferdinand R. Marcos, Jr. can ensure the financial system will remain stable by addressing key economic concerns, including inflation and the impact of the coronavirus pandemic.
\n\u201cWe have a generally peaceful and orderly election that is positive for the economy,\u201d Bankers Association of the Philippines President Antonio C. Moncupa, Jr. said in a statement. \u201cOn the other hand, there are considerable headwinds facing the economy \u2014 geopolitical uncertainties, inflation, and the lingering effects of the pandemic. We wish the new administration well in meeting these challenges.
\nMeanwhile, the Chamber of Thrift Banks (CTB) said they are waiting for the next administration\u2019s plans for the economy.
\n\u201cLike the rest of the business community, I am interested to know the incoming administration\u2019s detailed economic program and the credibility and competence of the new economic team,\u201d CTB Executive Director Suzanne I. Felix said in a Viber message.
\nMs. Felix said the management of the economy is important amid \u201cballooning debt, still elevated unemployment, and rising commodity prices\u201d and with the pandemic still being a threat to recovery.
\n\u201cLegislative reforms must also be pursued so the banking sector (especially private banking) is depoliticized,\u201d she added.
\nMs. Felix also hopes the next administration will prioritize infrastructure issues in the agriculture sector, including the lack of storage and farm-to-market roads.
\nMeanwhile, FintechAlliance.ph Chairman Angelito M. Villanueva said they hope the incoming administration will continue to create a \u201crobust and sustainable digital economy.\u201d
\n\u201cAcross all sectors and industries, may we achieve financial inclusion and shared prosperity through continued digital transformation,\u201d Mr. Villanueva said in a Viber message.
\nFor its part, the Rural Bankers Association of the Philippines (RBAP) expects the next administration to pursue programs that will advance financial inclusion in rural areas.
\n\u201cWe hope that the new administration will understand that even with digital banking, there still remains a large majority of unbanked and underbanked and that rural banks continue to be the main channel for credit and lending in the countryside,\u201d RBAP President Albert T. Concha, Jr. said in a Viber message.
\nMr. Concha said they hope regulators will also reconsider its proposal to increase the minimum capital requirement for rural banks. The central bank wants to raise the minimum capital requirement for rural banks to a range of P60 million to P200 million, depending on the number of their branches.
\n\u201c[This] is too high and is not reflective of the economic activity of some local areas where the rural banks operate in. If a single-unit bank raises P60 million in capital, our question is, what will it do with that much cash?\u201d Mr. Concha said.
\n\u201cA look at the GDP (gross domestic product) contribution of areas outside the big cities of Metro Manila, Cebu, Davao and 1st class municipalities will show that there is not enough business activity to warrant capital requirements of that amount, especially of a single unit branch,\u201d he added.
\nThe banking industry\u2019s total assets rose 6.9% to reach a record high of P21.41 trillion in 2021.
\nMeanwhile, the sector\u2019s net profit jumped by 44.79% to P224.752 billion in 2021 from P155.218 billion in 2020. \u2014 Luz Wendy T. Noble
\n", "content_text": "BANKING INDUSTRY GROUPS hope the next administration headed by former Senator Ferdinand R. Marcos, Jr. can ensure the financial system will remain stable by addressing key economic concerns, including inflation and the impact of the coronavirus pandemic.\n\u201cWe have a generally peaceful and orderly election that is positive for the economy,\u201d Bankers Association of the Philippines President Antonio C. Moncupa, Jr. said in a statement. \u201cOn the other hand, there are considerable headwinds facing the economy \u2014 geopolitical uncertainties, inflation, and the lingering effects of the pandemic. We wish the new administration well in meeting these challenges.\nMeanwhile, the Chamber of Thrift Banks (CTB) said they are waiting for the next administration\u2019s plans for the economy.\n\u201cLike the rest of the business community, I am interested to know the incoming administration\u2019s detailed economic program and the credibility and competence of the new economic team,\u201d CTB Executive Director Suzanne I. Felix said in a Viber message.\nMs. Felix said the management of the economy is important amid \u201cballooning debt, still elevated unemployment, and rising commodity prices\u201d and with the pandemic still being a threat to recovery.\n\u201cLegislative reforms must also be pursued so the banking sector (especially private banking) is depoliticized,\u201d she added.\nMs. Felix also hopes the next administration will prioritize infrastructure issues in the agriculture sector, including the lack of storage and farm-to-market roads.\nMeanwhile, FintechAlliance.ph Chairman Angelito M. Villanueva said they hope the incoming administration will continue to create a \u201crobust and sustainable digital economy.\u201d \n\u201cAcross all sectors and industries, may we achieve financial inclusion and shared prosperity through continued digital transformation,\u201d Mr. Villanueva said in a Viber message.\nFor its part, the Rural Bankers Association of the Philippines (RBAP) expects the next administration to pursue programs that will advance financial inclusion in rural areas.\n\u201cWe hope that the new administration will understand that even with digital banking, there still remains a large majority of unbanked and underbanked and that rural banks continue to be the main channel for credit and lending in the countryside,\u201d RBAP President Albert T. Concha, Jr. said in a Viber message.\nMr. Concha said they hope regulators will also reconsider its proposal to increase the minimum capital requirement for rural banks. The central bank wants to raise the minimum capital requirement for rural banks to a range of P60 million to P200 million, depending on the number of their branches.\n\u201c[This] is too high and is not reflective of the economic activity of some local areas where the rural banks operate in. If a single-unit bank raises P60 million in capital, our question is, what will it do with that much cash?\u201d Mr. Concha said.\n\u201cA look at the GDP (gross domestic product) contribution of areas outside the big cities of Metro Manila, Cebu, Davao and 1st class municipalities will show that there is not enough business activity to warrant capital requirements of that amount, especially of a single unit branch,\u201d he added.\nThe banking industry\u2019s total assets rose 6.9% to reach a record high of P21.41 trillion in 2021.\nMeanwhile, the sector\u2019s net profit jumped by 44.79% to P224.752 billion in 2021 from P155.218 billion in 2020. \u2014 Luz Wendy T. Noble", "date_published": "2022-05-13T00:02:25+08:00", "date_modified": "2022-05-12T18:29:40+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/04/banking-and-finance-default.jpg", "tags": [ "Featured2", "Luz Wendy T. Noble", "Banking & Finance", "Editors' Picks" ], "summary": "BANKING INDUSTRY GROUPS hope the next administration headed by former Senator Ferdinand R. Marcos, Jr. can ensure the financial system will remain stable by addressing key economic concerns, including inflation and the impact of the coronavirus pandemic." }, { "id": "/?p=448143", "url": "/banking-finance/2022/05/12/448143/peso-down-on-hawkish-fed-faster-us-consumer-inflation/", "title": "Peso down on hawkish Fed, faster US consumer inflation", "content_html": "THE PESO retreated versus the greenback on Thursday following hawkish signals from the US Federal Reserve as well as faster US inflation.
\nThe local unit closed at P52.495 per dollar on Thursday, down by 22 centavos from its P52.275 finish on Wednesday, data from the Bankers Association of the Philippines showed.
\nThe peso opened Thursday\u2019s session at P52.28 versus the dollar, which was also its intraday best. Meanwhile, its weakest showing was its close of P52.495 against the greenback.
\nDollars exchanged increased to $1.08 billion on Thursday from $898.9 million on Wednesday.
\nThe peso depreciated on Thursday due to hawkish signals from a key Fed official, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.
\nBloomberg reported that Federal Reserve Bank of Atlanta President Raphael Bostic said they are open to increasing interest rates to manage growth if inflation remains persistently elevated.
\n\u201cIf inflation stays at high levels or levels that are too high \u2014 by too high, it\u2019s really not moving back towards our 2% target \u2014 then I am going to be supporting moving more,\u201d Mr. Bostic said.
\nMeanwhile, a trader in a Viber message said the peso weakened as US consumer inflation rose quicker than expected.
\nData from the US Labor Department released Wednesday showed US consumer prices rose by 8.3% on an annual basis in April.
\nFor Friday, Mr. Ricafort gave a forecast range of P52.35 to P52.55, while the trader expects the local unit to move from P52.40 to P52.60. \u2014 L.W.T Noble with Bloomberg
\n", "content_text": "THE PESO retreated versus the greenback on Thursday following hawkish signals from the US Federal Reserve as well as faster US inflation.\nThe local unit closed at P52.495 per dollar on Thursday, down by 22 centavos from its P52.275 finish on Wednesday, data from the Bankers Association of the Philippines showed.\nThe peso opened Thursday\u2019s session at P52.28 versus the dollar, which was also its intraday best. Meanwhile, its weakest showing was its close of P52.495 against the greenback.\nDollars exchanged increased to $1.08 billion on Thursday from $898.9 million on Wednesday.\nThe peso depreciated on Thursday due to hawkish signals from a key Fed official, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.\nBloomberg reported that Federal Reserve Bank of Atlanta President Raphael Bostic said they are open to increasing interest rates to manage growth if inflation remains persistently elevated.\n\u201cIf inflation stays at high levels or levels that are too high \u2014 by too high, it\u2019s really not moving back towards our 2% target \u2014 then I am going to be supporting moving more,\u201d Mr. Bostic said.\nMeanwhile, a trader in a Viber message said the peso weakened as US consumer inflation rose quicker than expected.\nData from the US Labor Department released Wednesday showed US consumer prices rose by 8.3% on an annual basis in April.\nFor Friday, Mr. Ricafort gave a forecast range of P52.35 to P52.55, while the trader expects the local unit to move from P52.40 to P52.60. \u2014 L.W.T Noble with Bloomberg", "date_published": "2022-05-12T21:00:24+08:00", "date_modified": "2022-05-12T18:31:24+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2022/03/Peso-coins-currency.jpg", "tags": [ "Luz Wendy T. Noble", "Banking & Finance" ], "summary": "THE PESO retreated versus the greenback on Thursday following hawkish signals from the US Federal Reserve as well as faster US inflation." }, { "id": "/?p=447924", "url": "/top-stories/2022/05/12/447924/marcos-likely-to-focus-on-infrastructure-but-funding-remains-unclear/", "title": "Marcos likely to focus on infrastructure but funding remains unclear", "content_html": "By Kyle Aristophere T. Atienza, Reporter
\nTHE INCOMING ADMINISTRATION of Ferdinand R. Marcos, Jr. is expected to focus on infrastructure development to drive the Philippine economy\u2019s recovery from the pandemic, but questions remain on how these projects will be funded.
\nMr. Marcos, the only son and namesake of the late dictator, is poised to become the country\u2019s 17th president after a landslide win in Monday\u2019s election.
\n\u201c(Mr. Marcos) did, however, pledge to continue with President Duterte\u2019s economic policies, particularly the \u2018Build, Build, Build\u2019 infrastructure program that was the flagship project of the Duterte administration and helped boost the Philippines\u2019 economic growth prior to the pandemic,\u201d MUFG Bank analyst Sophia Ng said in a note.
\nIn a commentary, Fitch Solutions said Mr. Marcos\u2019s victory bodes well for policy continuity in the country, as his economic and foreign policy stances are similar to those implemented by Mr. Duterte.
\n\u201cMarcos is likely to continue to focus on infrastructure development on the economic front, while striving to maintain a delicate balancing act between the US and China in terms of foreign policy,\u201d Fitch Solutions said.
\nInfrastructure spending hit P895.1 billion in 2021, growing by a nearly a third from a year earlier.
\nUnder the P5-trillion 2022 budget, about a fifth is allocated for capital outlays which includes infrastructure projects.
\nTerry L. Ridon, convenor of infrastructure think tank InfraWatchPH, said Mr. Marcos has not identified potential funding sources for his infrastructure plan. He said it is also not clear if Mr. Marcos would continue the Duterte administration\u2019s shift from public-private partnership (PPP) to official development assistance (ODA) funding for major infrastructure projects.
\n\u201cThis is a policy which he must decide on in the coming days, and we hope he will decide considering mainly our debt position at the moment and the least cost to the public or end users of PPPs,\u201d Mr. Ridon said in a Messenger chat.
\n\u201cHe should really put more meat on his pronouncement regarding the continuity of the \u2018Build, Build, Build\u2019 program because he has never provided specific details during the entire campaign,\u201d he said.
\nMr. Ridon urged the incoming Marcos administration to consider a shift to PPP projects to avoid incurring more debt.
\nAs of end-March, the National Government\u2019s (NG) total outstanding debt stood at a record P12.68 trillion.
\nBALANCING ACT
\n\u201c(Mr.) Marcos faces a tricky balancing act between supporting the economic recovery and containing the Philippines\u2019 burgeoning fiscal deficit,\u201d Oxford Economics Lead Economist Sian Fenner and Assistant Economist Makoto Tsuchiya said in a note.
The Philippines\u2019 budget deficit has sharply widened during the pandemic, as revenue collections remained lackluster.
\nThe government has set a 2022 budget deficit ceiling of P1.65 trillion, equivalent to 7.7% of gross domestic product (GDP).
\nThe country\u2019s outstanding debt stood at P11.73 trillion as of end-2021. This pushed the debt-to-GDP ratio to a 16-year high of 60.5%, slightly beyond the 60% threshold considered as manageable by multilateral lenders for developing economies.
\n\u201cIt\u2019s also possible that Macros Jr. announces a more expansionary fiscal agenda than we currently forecast\u2026 While the additional fiscal spending would support the recovery, it would undoubtedly catch the attention of the major rating agencies,\u201d Oxford Economics said.
\n\u201cWe believe Marcos Jr. will need to balance the risks of a deteriorating external financing position against providing ongoing support for the recovery.\u201d
\nZyza Nadine Suzara, an economist and public finance expert, said Mr. Marcos will likely continue major infrastructure projects and implement \u201cpopulist\u201d measures such as subsidies for rice that may not be fiscally sustainable for the government.
\n\u201cThat way, we can actually expect a higher deficit, which means a higher level of debt to finance those kinds of programs,\u201d she said in a phone interview.
\nShe said the Marcoses need to settle their unpaid estate tax, which has ballooned to more than P200 billion due to interests and other penalties, to show their willingness to fix the country\u2019s public finances.
\nUNCERTAINTY
\nPantheon Macroeconomics, a think tank based in the United Kingdom, said that while uncertainty over the election is all but over, \u201cambiguity over Mr. Marcos\u2019s economic policy positions is still there\u201d as his campaign was devoid of specific proposals.
The public will only get an idea of the policies under a Marcos presidency by next month at the earliest, when the next administration will start to take shape, it said.
\n\u201cWe maintain, though, that this will be too late to salvage this year\u2019s economic growth prospects, assuming we\u2019re proven right about the temporary \u2014 but harsh \u2014 brakes likely applied in the current quarter to government spending and investment,\u201d it added.
\nThe late dictator\u2019s son, who had a wide lead in pre-election surveys, declined major presidential debates, which experts said were necessary to determine the stances of candidates on key economic issues.
\n\u201cMarcos has made it a point to not give any detail regarding his platform during the campaign, which is likely to drive economic uncertainty since he\u2019s now leading the race,\u201d said Leonardo A. Lanzona, who teaches economics at the Ateneo de Manila University.
\nMr. Lanzona cited Mr. Marcos\u2019s promise to lower rice prices by P20 to P30, which was done without consulting various sectors and considering economic aspects that might swell National Government debt.
\n\u201cThis is not the way elections are supposed to be conducted. It should offer the voters information about the public goods that the administration is supposed to produce and how much this will cost,\u201d he said.
\nAgustin L. Arcenas, an economist at Ateneo, said some investors may reconsider plans to invest due to lack of clarity regarding an economic recovery plan.
\n\u201cInvestors have choices when it comes to where they will place their money, and they are likely to choose the country that has a positive business outlook,\u201d he said in an e-mail. \u201cIn Southeast Asia, the Philippines must compete against countries like Vietnam and Thailand for investment.\u201d \u2014 with Luz Wendy T. Noble
\n", "content_text": "By Kyle Aristophere T. Atienza, Reporter\nTHE INCOMING ADMINISTRATION of Ferdinand R. Marcos, Jr. is expected to focus on infrastructure development to drive the Philippine economy\u2019s recovery from the pandemic, but questions remain on how these projects will be funded.\nMr. Marcos, the only son and namesake of the late dictator, is poised to become the country\u2019s 17th president after a landslide win in Monday\u2019s election.\n\u201c(Mr. Marcos) did, however, pledge to continue with President Duterte\u2019s economic policies, particularly the \u2018Build, Build, Build\u2019 infrastructure program that was the flagship project of the Duterte administration and helped boost the Philippines\u2019 economic growth prior to the pandemic,\u201d MUFG Bank analyst Sophia Ng said in a note.\nIn a commentary, Fitch Solutions said Mr. Marcos\u2019s victory bodes well for policy continuity in the country, as his economic and foreign policy stances are similar to those implemented by Mr. Duterte.\n\u201cMarcos is likely to continue to focus on infrastructure development on the economic front, while striving to maintain a delicate balancing act between the US and China in terms of foreign policy,\u201d Fitch Solutions said.\nInfrastructure spending hit P895.1 billion in 2021, growing by a nearly a third from a year earlier.\nUnder the P5-trillion 2022 budget, about a fifth is allocated for capital outlays which includes infrastructure projects.\nTerry L. Ridon, convenor of infrastructure think tank InfraWatchPH, said Mr. Marcos has not identified potential funding sources for his infrastructure plan. He said it is also not clear if Mr. Marcos would continue the Duterte administration\u2019s shift from public-private partnership (PPP) to official development assistance (ODA) funding for major infrastructure projects.\n\u201cThis is a policy which he must decide on in the coming days, and we hope he will decide considering mainly our debt position at the moment and the least cost to the public or end users of PPPs,\u201d Mr. Ridon said in a Messenger chat.\n\u201cHe should really put more meat on his pronouncement regarding the continuity of the \u2018Build, Build, Build\u2019 program because he has never provided specific details during the entire campaign,\u201d he said.\nMr. Ridon urged the incoming Marcos administration to consider a shift to PPP projects to avoid incurring more debt.\nAs of end-March, the National Government\u2019s (NG) total outstanding debt stood at a record P12.68 trillion.\nBALANCING ACT\n\u201c(Mr.) Marcos faces a tricky balancing act between supporting the economic recovery and containing the Philippines\u2019 burgeoning fiscal deficit,\u201d Oxford Economics Lead Economist Sian Fenner and Assistant Economist Makoto Tsuchiya said in a note.\nThe Philippines\u2019 budget deficit has sharply widened during the pandemic, as revenue collections remained lackluster.\nThe government has set a 2022 budget deficit ceiling of P1.65 trillion, equivalent to 7.7% of gross domestic product (GDP).\nThe country\u2019s outstanding debt stood at P11.73 trillion as of end-2021. This pushed the debt-to-GDP ratio to a 16-year high of 60.5%, slightly beyond the 60% threshold considered as manageable by multilateral lenders for developing economies.\n\u201cIt\u2019s also possible that Macros Jr. announces a more expansionary fiscal agenda than we currently forecast\u2026 While the additional fiscal spending would support the recovery, it would undoubtedly catch the attention of the major rating agencies,\u201d Oxford Economics said.\n\u201cWe believe Marcos Jr. will need to balance the risks of a deteriorating external financing position against providing ongoing support for the recovery.\u201d\nZyza Nadine Suzara, an economist and public finance expert, said Mr. Marcos will likely continue major infrastructure projects and implement \u201cpopulist\u201d measures such as subsidies for rice that may not be fiscally sustainable for the government.\n\u201cThat way, we can actually expect a higher deficit, which means a higher level of debt to finance those kinds of programs,\u201d she said in a phone interview.\nShe said the Marcoses need to settle their unpaid estate tax, which has ballooned to more than P200 billion due to interests and other penalties, to show their willingness to fix the country\u2019s public finances.\nUNCERTAINTY\nPantheon Macroeconomics, a think tank based in the United Kingdom, said that while uncertainty over the election is all but over, \u201cambiguity over Mr. Marcos\u2019s economic policy positions is still there\u201d as his campaign was devoid of specific proposals.\nThe public will only get an idea of the policies under a Marcos presidency by next month at the earliest, when the next administration will start to take shape, it said.\n\u201cWe maintain, though, that this will be too late to salvage this year\u2019s economic growth prospects, assuming we\u2019re proven right about the temporary \u2014 but harsh \u2014 brakes likely applied in the current quarter to government spending and investment,\u201d it added.\nThe late dictator\u2019s son, who had a wide lead in pre-election surveys, declined major presidential debates, which experts said were necessary to determine the stances of candidates on key economic issues.\n\u201cMarcos has made it a point to not give any detail regarding his platform during the campaign, which is likely to drive economic uncertainty since he\u2019s now leading the race,\u201d said Leonardo A. Lanzona, who teaches economics at the Ateneo de Manila University.\nMr. Lanzona cited Mr. Marcos\u2019s promise to lower rice prices by P20 to P30, which was done without consulting various sectors and considering economic aspects that might swell National Government debt. \n\u201cThis is not the way elections are supposed to be conducted. It should offer the voters information about the public goods that the administration is supposed to produce and how much this will cost,\u201d he said.\nAgustin L. Arcenas, an economist at Ateneo, said some investors may reconsider plans to invest due to lack of clarity regarding an economic recovery plan. \n\u201cInvestors have choices when it comes to where they will place their money, and they are likely to choose the country that has a positive business outlook,\u201d he said in an e-mail. \u201cIn Southeast Asia, the Philippines must compete against countries like Vietnam and Thailand for investment.\u201d \u2014 with Luz Wendy T. Noble", "date_published": "2022-05-12T00:31:15+08:00", "date_modified": "2022-05-11T20:58:15+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2022/05/Marcos-campaign-rally-1.jpg", "tags": [ "Kyle Aristophere T. Atienza", "Luz Wendy T. Noble", "大象传媒" ], "summary": "THE INCOMING ADMINISTRATION of Ferdinand R. Marcos, Jr. is expected to focus on infrastructure development to drive the Philippine economy\u2019s recovery from the pandemic, but questions remain on how these projects will be funded." }, { "id": "/?p=447839", "url": "/banking-finance/2022/05/12/447839/branch-cost-credit-risks-seen-to-slow-down-islamic-banking-growth/", "title": "Branch cost, credit risks seen to slow down Islamic banking growth", "content_html": "THE GROWTH of Islamic banking in the country is likely to remain sluggish despite regulatory push for the sector\u2019s growth, mainly due to cost and credit risk issues, S&P Global Ratings said.
\nThe ratings agency sees Islamic banking prospects in the country to be an outlier amid the \u201cgrowing belief\u201d for the market in Southeast Asia.
\n\u201cIn the Philippines, the market share of Islamic banks will remain insignificant despite a regulatory push. About 5%-6% of the Philippine population is Muslim, who live in highly underbanked regions, and thus form an untapped segment,\u201d S&P said in a note on Wednesday.
\nLast week, the Bangko Sentral ng Pilipinas (BSP), together with other government agencies, signed a memorandum of agreement for the creation of the Shari\u2019ah Supervisory Board (SSB) in the Bangsamoro Autonomous Region in Muslim Mindanao. The SSB is expected to help develop the regulatory environment for Islamic banking and services.
\nAl Amanah Islamic Bank is the only Islamic lender currently operating in the country. It is under the Development Bank of the Philippines.
\n\u201cThe bank\u2019s growth and earnings should improve in 2022 as it is likely to benefit from the ongoing recovery in the Philippines. However, the bank\u2019s market share will remain very small (less than 0.1%),\u201d S&P said.
\nMeanwhile, S&P noted how there seems to be \u201clittle interest\u201d from major commercial banks to go into offering Islamic banking services.
\n\u201cWe expect this is due to the high cost of setting up branches in the region and higher credit risk due to the low-income profile of borrowers,\u201d S&P said.
\nSince the Islamic banking framework was established in 2019, the BSP said there had been no formal applications yet for the creation of Islamic banks or Islamic banking units. However, it said a few local and international players had expressed interest in the sector.
\nS&P noted how the central bank is looking into lowering the minimum capital requirements for Islamic banks compared with conventional banks.
\n\u201cWhile this could encourage both local and foreign participation in the sector, it could also result in Islamic banking sector being less resilient and having narrower capital buffers compared to conventional banks,\u201d S&P said.
\nThe $290-billion Islamic banking market is likely to expand at a compound annual growth rate of about 8% over the next three years, S&P said. \u2014 Luz Wendy T. Noble
\n", "content_text": "THE GROWTH of Islamic banking in the country is likely to remain sluggish despite regulatory push for the sector\u2019s growth, mainly due to cost and credit risk issues, S&P Global Ratings said.\nThe ratings agency sees Islamic banking prospects in the country to be an outlier amid the \u201cgrowing belief\u201d for the market in Southeast Asia.\n\u201cIn the Philippines, the market share of Islamic banks will remain insignificant despite a regulatory push. About 5%-6% of the Philippine population is Muslim, who live in highly underbanked regions, and thus form an untapped segment,\u201d S&P said in a note on Wednesday.\nLast week, the Bangko Sentral ng Pilipinas (BSP), together with other government agencies, signed a memorandum of agreement for the creation of the Shari\u2019ah Supervisory Board (SSB) in the Bangsamoro Autonomous Region in Muslim Mindanao. The SSB is expected to help develop the regulatory environment for Islamic banking and services.\nAl Amanah Islamic Bank is the only Islamic lender currently operating in the country. It is under the Development Bank of the Philippines.\n\u201cThe bank\u2019s growth and earnings should improve in 2022 as it is likely to benefit from the ongoing recovery in the Philippines. However, the bank\u2019s market share will remain very small (less than 0.1%),\u201d S&P said.\nMeanwhile, S&P noted how there seems to be \u201clittle interest\u201d from major commercial banks to go into offering Islamic banking services.\n\u201cWe expect this is due to the high cost of setting up branches in the region and higher credit risk due to the low-income profile of borrowers,\u201d S&P said.\nSince the Islamic banking framework was established in 2019, the BSP said there had been no formal applications yet for the creation of Islamic banks or Islamic banking units. However, it said a few local and international players had expressed interest in the sector.\nS&P noted how the central bank is looking into lowering the minimum capital requirements for Islamic banks compared with conventional banks.\n\u201cWhile this could encourage both local and foreign participation in the sector, it could also result in Islamic banking sector being less resilient and having narrower capital buffers compared to conventional banks,\u201d S&P said.\nThe $290-billion Islamic banking market is likely to expand at a compound annual growth rate of about 8% over the next three years, S&P said. \u2014 Luz Wendy T. Noble", "date_published": "2022-05-12T00:02:01+08:00", "date_modified": "2022-05-11T18:35:17+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/04/banking-and-finance-default.jpg", "tags": [ "Featured2", "Luz Wendy T. Noble", "Banking & Finance", "Editors' Picks" ], "summary": "THE GROWTH of Islamic banking in the country is likely to remain sluggish despite regulatory push for the sector\u2019s growth, mainly due to cost and credit risk issues, S&P Global Ratings said." }, { "id": "/?p=447837", "url": "/banking-finance/2022/05/12/447837/tdf-yields-mixed-on-lower-oil-prices-rate-hike-bets/", "title": "TDF yields mixed on lower oil prices, rate hike bets", "content_html": "YIELDS on the term deposits of the Bangko Sentral ng Pilipinas (BSP) ended mixed on Wednesday as oil prices settled lower and with the market anticipating an earlier rate hike from monetary authorities.
\nBids for the term deposit facility (TDF) of the central bank amounted to P312.547 billion, going beyond the P240-billion offer as well as the P296.062 billion in tenders seen a week earlier.
\nBroken down, tenders for the seven-day deposits amounted to P150.945 billion, going beyond the P100 billion auctioned off by the BSP and also higher than the P139.258 billion in tenders a week earlier.
\nAccepted rates were from 1.92% to 1.9827%, slimmer than the 1.89% to 2.0222% last week. This caused the average rate of the one-week term deposits to inch up by 0.02 basis point to 1.9599% from 1.9597% previously.
\nMeanwhile, the 14-day papers fetched tenders amounting to P161.602 billion, higher than the P140-billion offer as well as the P156.804 billion in bids the previous Wednesday.
\nBanks sought for yields ranging from 1.9% to 2.25%, narrower than the 1.925% to 2.37% margin seen on May 4. With this, the average rate of the two-week papers declined by 0.65 basis point to 2.0287% from 2.0352% in the prior auction.
\n\u201cThe results of the TDF auction point to a normalization in liquidity conditions amid ample supply in the financial system. Going forward, the BSP\u2019s monetary operations will remain guided by its assessment of the latest liquidity conditions and market developments,\u201d BSP Deputy Governor Francisco G. Dakila, Jr. said in a statement.
\nThe BSP has not auctioned 28-day term deposits for more than a year to give way to its weekly auctions of securities with the same tenor.
\nBoth the TDF and 28-day bills are used by the central bank to gather excess liquidity in the financial system and to better guide market rates.
\nTerm deposit yields were mixed after global oil prices inched down, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
\nReuters reported that fuel prices dropped to two-week lows at below $100 per barrel on Tuesday due to demand worries over the impact of the lockdowns in China and the growing recession risks in the US.
\nThe US West Texas Intermediate crude declined by $3.33 or 3.2% to $99.76 a barrel on Tuesday, while the Brent crude fell $3.48 or 3.28% to $102.46 per barrel.
\nMr. Ricafort said the market also factored in more hawkish signals from the BSP.
\nBSP Governor Benjamin E. Diokno said late April that monetary authorities might consider increasing interest rates in their June 23 meeting after assessing economic growth and labor data. He said they would want to ensure first that recovery has become entrenched before tightening policy rates.
\nThe first-quarter gross domestic product data will be released this Thursday by the Philippine Statistics Authority.
\nA 大象传媒 poll of 17 analysts yielded a median estimate of 6.7% economic growth for the first quarter, which will mark the fourth straight quarter of GDP expansion. If realized, this would be slower than the 7.8% growth in the fourth quarter of 2021 but a turnaround from the 3.8% decline in the same three months last year. \u2014 Luz Wendy T. Noble with Reuters
\n", "content_text": "YIELDS on the term deposits of the Bangko Sentral ng Pilipinas (BSP) ended mixed on Wednesday as oil prices settled lower and with the market anticipating an earlier rate hike from monetary authorities.\nBids for the term deposit facility (TDF) of the central bank amounted to P312.547 billion, going beyond the P240-billion offer as well as the P296.062 billion in tenders seen a week earlier.\nBroken down, tenders for the seven-day deposits amounted to P150.945 billion, going beyond the P100 billion auctioned off by the BSP and also higher than the P139.258 billion in tenders a week earlier.\nAccepted rates were from 1.92% to 1.9827%, slimmer than the 1.89% to 2.0222% last week. This caused the average rate of the one-week term deposits to inch up by 0.02 basis point to 1.9599% from 1.9597% previously.\nMeanwhile, the 14-day papers fetched tenders amounting to P161.602 billion, higher than the P140-billion offer as well as the P156.804 billion in bids the previous Wednesday.\nBanks sought for yields ranging from 1.9% to 2.25%, narrower than the 1.925% to 2.37% margin seen on May 4. With this, the average rate of the two-week papers declined by 0.65 basis point to 2.0287% from 2.0352% in the prior auction.\n\u201cThe results of the TDF auction point to a normalization in liquidity conditions amid ample supply in the financial system. Going forward, the BSP\u2019s monetary operations will remain guided by its assessment of the latest liquidity conditions and market developments,\u201d BSP Deputy Governor Francisco G. Dakila, Jr. said in a statement.\nThe BSP has not auctioned 28-day term deposits for more than a year to give way to its weekly auctions of securities with the same tenor.\nBoth the TDF and 28-day bills are used by the central bank to gather excess liquidity in the financial system and to better guide market rates.\nTerm deposit yields were mixed after global oil prices inched down, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.\nReuters reported that fuel prices dropped to two-week lows at below $100 per barrel on Tuesday due to demand worries over the impact of the lockdowns in China and the growing recession risks in the US.\nThe US West Texas Intermediate crude declined by $3.33 or 3.2% to $99.76 a barrel on Tuesday, while the Brent crude fell $3.48 or 3.28% to $102.46 per barrel.\nMr. Ricafort said the market also factored in more hawkish signals from the BSP.\nBSP Governor Benjamin E. Diokno said late April that monetary authorities might consider increasing interest rates in their June 23 meeting after assessing economic growth and labor data. He said they would want to ensure first that recovery has become entrenched before tightening policy rates.\nThe first-quarter gross domestic product data will be released this Thursday by the Philippine Statistics Authority.\nA 大象传媒 poll of 17 analysts yielded a median estimate of 6.7% economic growth for the first quarter, which will mark the fourth straight quarter of GDP expansion. If realized, this would be slower than the 7.8% growth in the fourth quarter of 2021 but a turnaround from the 3.8% decline in the same three months last year. \u2014 Luz Wendy T. Noble with Reuters", "date_published": "2022-05-12T00:01:46+08:00", "date_modified": "2022-05-11T18:31:31+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2022/01/BSP.jpg", "tags": [ "Featured2", "Luz Wendy T. Noble", "Banking & Finance", "Editors' Picks" ], "summary": "YIELDS on the term deposits of the Bangko Sentral ng Pilipinas (BSP) ended mixed on Wednesday as oil prices settled lower and with the market anticipating an earlier rate hike from monetary authorities." }, { "id": "/?p=447838", "url": "/banking-finance/2022/05/11/447838/peso-up-on-upbeat-fdi-ahead-of-gdp-data/", "title": "Peso up on upbeat FDI, ahead of GDP data", "content_html": "THE PESO strengthened versus the greenback on Wednesday due to upbeat market sentiment on higher foreign direct investments (FDIs) and the decline in global oil prices.
\nThe local unit closed at P52.275 per dollar on Wednesday, gaining 9.5 centavos from its P52.37 finish on Tuesday, based on Bankers Association of the Philippines data.
\nThe peso opened Wednesday\u2019s session at P52.32. Its weakest showing was at P52.35, while its intraday best was at P52.222.
\nDollars exchanged increased to $898.9 million on Wednesday from $691.6 million on Tuesday.
\nThe peso appreciated due to bullish sentiment on higher FDI flows, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
\nForeign direct investments increased by 46.3% to $893 million in February from a year earlier. Analysts said market sentiment improved as infections declined.
\nThis brought the cumulative FDI inflows to $1.7 billion in the first two months of 2022, up by 8% compared with the same period of 2021.
\nMeanwhile, a trader in a Viber message said the peso strengthened due to expectations of upbeat first-quarter growth.
\nThe Philippine Statistics Authority will report the gross domestic product data for the January-to-March period on Thursday.
\nA 大象传媒 poll of 17 analysts yielded a median estimate of 6.7% economic growth for the first quarter, which will mark the fourth straight quarter of GDP expansion. If realized, this would be slower than the 7.8% growth in the fourth quarter of 2021 but still a turnaround from the 3.8% decline in the same three months last year.
\nFor Thursday, Mr. Ricafort gave a forecast range of P52.18 to P52.35, while the trader expects the local unit to move within P52.15 to P52.35. \u2014 Luz Wendy T. Noble
\n", "content_text": "THE PESO strengthened versus the greenback on Wednesday due to upbeat market sentiment on higher foreign direct investments (FDIs) and the decline in global oil prices.\nThe local unit closed at P52.275 per dollar on Wednesday, gaining 9.5 centavos from its P52.37 finish on Tuesday, based on Bankers Association of the Philippines data.\nThe peso opened Wednesday\u2019s session at P52.32. Its weakest showing was at P52.35, while its intraday best was at P52.222.\nDollars exchanged increased to $898.9 million on Wednesday from $691.6 million on Tuesday.\nThe peso appreciated due to bullish sentiment on higher FDI flows, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.\nForeign direct investments increased by 46.3% to $893 million in February from a year earlier. Analysts said market sentiment improved as infections declined.\nThis brought the cumulative FDI inflows to $1.7 billion in the first two months of 2022, up by 8% compared with the same period of 2021.\nMeanwhile, a trader in a Viber message said the peso strengthened due to expectations of upbeat first-quarter growth.\nThe Philippine Statistics Authority will report the gross domestic product data for the January-to-March period on Thursday.\nA 大象传媒 poll of 17 analysts yielded a median estimate of 6.7% economic growth for the first quarter, which will mark the fourth straight quarter of GDP expansion. If realized, this would be slower than the 7.8% growth in the fourth quarter of 2021 but still a turnaround from the 3.8% decline in the same three months last year.\nFor Thursday, Mr. Ricafort gave a forecast range of P52.18 to P52.35, while the trader expects the local unit to move within P52.15 to P52.35. \u2014 Luz Wendy T. Noble", "date_published": "2022-05-11T21:26:49+08:00", "date_modified": "2022-05-11T18:30:14+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2021/12/peso-photo.jpg", "tags": [ "Luz Wendy T. Noble", "Banking & Finance" ], "summary": "THE PESO strengthened versus the greenback on Wednesday due to upbeat market sentiment on higher foreign direct investments (FDIs) and the decline in global oil prices." }, { "id": "/?p=447317", "url": "/top-stories/2022/05/10/447317/inflation-a-headache-for-next-leader/", "title": "Inflation a \u2018headache\u2019 for next leader", "content_html": "THE PHILIPPINES\u2019 next president needs to immediately address rising inflation and fiscal issues, as the economy recovers from a coronavirus pandemic and the Russia-Ukraine war, analysts said.\u00a0
\nFilipinos on Monday voted in an election that was generally peaceful but marred by malfunctioning vote-counting machines and long lines. (Related story on S1/10)\u00a0
\n\u201cThe incoming president will need to treat inflation as a top economic priority\u2026 The prolonged pandemic has widened income disparity in the Philippines and increased unemployment,\u201d Sonia Zhu, an analyst at Moody\u2019s Analytics, said in a note titled \u201cInflation will be a big headache for the new Philippine president.\u201d
\nShe noted that leading presidential candidates former Senator Ferdinand R. Marcos, Jr. and Vice-President Maria Leonor G. Robredo have both floated fiscal support, with Mr. Marcos suggesting fuel subsidies and Ms. Robredo proposing targeted social aid for the poor.\u00a0 \u00a0
\n\u201cInflation management has become a key policy point. Since early 2022, household discretionary income has come under threat from higher prices for staples,\u201d Ms. Zhu said.
\nHeadline inflation sizzled to a three-year high of 4.9% in April, driven by soaring food and energy prices amid the Russia-Ukraine war. This was beyond the central bank\u2019s 2-4% target, and the 4.3% forecast for 2022.\u00a0
\nCommodity prices are expected to edge higher in the next months amid supply chain disruptions, China lockdowns and concerns over oil supply.\u00a0 \u00a0
\nIn a separate note released on Monday, Pantheon Chief Emerging Asia Economist Miguel Chanco said the next president should prioritize reviving the Philippine economy, whose recovery has \u201ceasily been the most lackluster in emerging Asia.\u201d\u00a0
\n\u201cWe\u2019d even go so far as to say that it doesn\u2019t really matter who takes the helm at Malaca\u00f1an Palace, as any future administration will be preoccupied with repairing the economic damage caused by the pandemic since 2020, with economic reforms likely to take a backseat,\u201d he said.\u00a0 \u00a0
\nThe Philippines\u2019 gross domestic product (GDP) grew by 5.7% in 2021, after a record 9.6% contraction in 2020. The government is targeting 7-9% growth this year, although multilateral agencies are forecasting below-target growth due to the Russia-Ukraine war.
\n\u201cBased on our current forecasts, real GDP will remain some 15% below the pre-COVID trend by the end of this year,\u201d Mr. Chanco said.
\nThe next administration also has to address the weak labor market, he said. The unemployment rate fell to 5.8% in March.\u00a0 \u00a0
\n\u201cConsumption, the economy\u2019s mainstay, is likely to stay under pressure, with the sluggish job market, the rebuilding of savings lost since 2020 and, more recently, fast-rising inflation, weighing heavily on spending decisions,\u201d Mr. Chanco said.
\nThink tank IBON Foundation Executive Director Sonny A. Africa said the new president should deal with the \u201cconsiderable economic scarring\u201d from the strict lockdowns during the early part of the pandemic.\u00a0
\n\u201c(The) current economic managers downplay the National Government debt burden it has substantially bloated, which will weigh heavily on public spending on social and economic services,\u201d he said in a Facebook Messenger chat. \u00a0 \u00a0
\nOutstanding National Government debt hit a record P12.68 trillion at end-March. The debt-to-GDP ratio hit a 16-year high of 60.5% in 2021, which is slightly above the 60% threshold considered manageable by multilateral lenders for developing economies.
\nWhile presidential candidates have presented possible ways to help bring down prices, analysts said the next administration would face fiscal constraints when implementing its programs.\u00a0 \u00a0 \u00a0
\n\u201cThe Philippines might not have the financial capacity to provide such fiscal cushioning. The limited fiscal room has the new administration\u2019s hands tied when it comes to navigating price hikes,\u201d Ms. Zhu said, adding that it may be up to the central bank to do the heavy lifting to cool inflation.
\n\u201cA first-quarter GDP growth reading above 6% year on year will increase the odds of a rate hike in June to 60%,\u201d she added. First-quarter GDP data will be released on May 12.
\nMr. Chanco said the country continues to face fiscal constraints. \u201cThe country suffered one of the biggest budget blowouts at the height of the COVID crisis, and progress in closing the budget gap has essentially stalled,\u201d he said.
\nThe budget deficit shrank by 1.44% year on year to P316.8 billion in the first quarter.
\nMeanwhile, Mr. Chanco said a victory by Mr. Marcos, who has led opinion polls, is \u201cunlikely to translate directly to a bad day for markets.\u201d
\n\u201cWhat arguably matters more is that election day proceeds smoothly and that the transition in government takes place without a hitch,\u201d he said.
\nHowever, Mr. Chanco said a possible worst-case scenario is political and government gridlock, if the runner-up challenges the results of the elections.\u00a0 \u00a0
\nTom Rafferty, The Economist Intelligence Unit regional director for Asia, said Mr. Marcos would likely continue the \u201cbroadly pro-market\u201d policy agenda set by President Rodrigo R. Duterte such as the infrastructure push, tax incentives for businesses and removal of barriers to investments.
\nIn a note released on Monday, Mr. Rafferty said the biggest risk to Mr. Marcos\u2019s presidency will be the execution of his policy agenda.
\n\u201cFailure to navigate the oft-fractious parliament and adequately deliver progress on major business-friendly reform and infrastructure upgrade amid an ongoing pandemic, which will require consummate political and communication skills, could jeopardize the country\u2019s hitherto impressive recent growth trajectory and trigger a sudden reversal of fortune and ensuing political volatility in 2023,\u201d he said.
\nUniversity of Asia and the Pacific economist Cid L. Terosa said in an e-mail that the winner of the presidential elections would matter to markets in the short run \u201cbut the business and market environments that the next president will weave matter more in the long run.\u201d
\n\u201cWhile we can argue that a (Marcos) presidency will be met by markets and investors with more intense apprehension than a Robredo presidency, (Marcos\u2019s) possible ascent to the presidency will give him the opportunity to either dispel doubts or magnify qualms. Since investors and markets are generally forward-looking, (Marcos) must exert effort to give them a good future. If he can do this, the past won\u2019t matter to investors and markets,\u201d Mr. Terosa said.
\nThe next administration will inherit an economy whose growth momentum is challenged by inflation and fiscal issues, he added.
\n\u201cWill his administration accelerate or decelerate the growth momentum? It will all depend on the economic decisions (Marcos) will make in the first three to six months of his presidency,\u201d Mr. Terosa said. \u2014 Luz Wendy T. Noble with inputs from Tobias Jared Tomas
\n", "content_text": "THE PHILIPPINES\u2019 next president needs to immediately address rising inflation and fiscal issues, as the economy recovers from a coronavirus pandemic and the Russia-Ukraine war, analysts said.\u00a0\nFilipinos on Monday voted in an election that was generally peaceful but marred by malfunctioning vote-counting machines and long lines. (Related story on S1/10)\u00a0\n\u201cThe incoming president will need to treat inflation as a top economic priority\u2026 The prolonged pandemic has widened income disparity in the Philippines and increased unemployment,\u201d Sonia Zhu, an analyst at Moody\u2019s Analytics, said in a note titled \u201cInflation will be a big headache for the new Philippine president.\u201d \nShe noted that leading presidential candidates former Senator Ferdinand R. Marcos, Jr. and Vice-President Maria Leonor G. Robredo have both floated fiscal support, with Mr. Marcos suggesting fuel subsidies and Ms. Robredo proposing targeted social aid for the poor.\u00a0 \u00a0\n\u201cInflation management has become a key policy point. Since early 2022, household discretionary income has come under threat from higher prices for staples,\u201d Ms. Zhu said.\nHeadline inflation sizzled to a three-year high of 4.9% in April, driven by soaring food and energy prices amid the Russia-Ukraine war. This was beyond the central bank\u2019s 2-4% target, and the 4.3% forecast for 2022.\u00a0\nCommodity prices are expected to edge higher in the next months amid supply chain disruptions, China lockdowns and concerns over oil supply.\u00a0 \u00a0 \nIn a separate note released on Monday, Pantheon Chief Emerging Asia Economist Miguel Chanco said the next president should prioritize reviving the Philippine economy, whose recovery has \u201ceasily been the most lackluster in emerging Asia.\u201d\u00a0\n\u201cWe\u2019d even go so far as to say that it doesn\u2019t really matter who takes the helm at Malaca\u00f1an Palace, as any future administration will be preoccupied with repairing the economic damage caused by the pandemic since 2020, with economic reforms likely to take a backseat,\u201d he said.\u00a0 \u00a0\nThe Philippines\u2019 gross domestic product (GDP) grew by 5.7% in 2021, after a record 9.6% contraction in 2020. The government is targeting 7-9% growth this year, although multilateral agencies are forecasting below-target growth due to the Russia-Ukraine war.\n\u201cBased on our current forecasts, real GDP will remain some 15% below the pre-COVID trend by the end of this year,\u201d Mr. Chanco said.\nThe next administration also has to address the weak labor market, he said. The unemployment rate fell to 5.8% in March.\u00a0 \u00a0\n\u201cConsumption, the economy\u2019s mainstay, is likely to stay under pressure, with the sluggish job market, the rebuilding of savings lost since 2020 and, more recently, fast-rising inflation, weighing heavily on spending decisions,\u201d Mr. Chanco said.\nThink tank IBON Foundation Executive Director Sonny A. Africa said the new president should deal with the \u201cconsiderable economic scarring\u201d from the strict lockdowns during the early part of the pandemic.\u00a0\n\u201c(The) current economic managers downplay the National Government debt burden it has substantially bloated, which will weigh heavily on public spending on social and economic services,\u201d he said in a Facebook Messenger chat. \u00a0 \u00a0\nOutstanding National Government debt hit a record P12.68 trillion at end-March. The debt-to-GDP ratio hit a 16-year high of 60.5% in 2021, which is slightly above the 60% threshold considered manageable by multilateral lenders for developing economies.\nWhile presidential candidates have presented possible ways to help bring down prices, analysts said the next administration would face fiscal constraints when implementing its programs.\u00a0 \u00a0 \u00a0\n\u201cThe Philippines might not have the financial capacity to provide such fiscal cushioning. The limited fiscal room has the new administration\u2019s hands tied when it comes to navigating price hikes,\u201d Ms. Zhu said, adding that it may be up to the central bank to do the heavy lifting to cool inflation.\n\u201cA first-quarter GDP growth reading above 6% year on year will increase the odds of a rate hike in June to 60%,\u201d she added. First-quarter GDP data will be released on May 12.\nMr. Chanco said the country continues to face fiscal constraints. \u201cThe country suffered one of the biggest budget blowouts at the height of the COVID crisis, and progress in closing the budget gap has essentially stalled,\u201d he said.\nThe budget deficit shrank by 1.44% year on year to P316.8 billion in the first quarter.\nMeanwhile, Mr. Chanco said a victory by Mr. Marcos, who has led opinion polls, is \u201cunlikely to translate directly to a bad day for markets.\u201d\n\u201cWhat arguably matters more is that election day proceeds smoothly and that the transition in government takes place without a hitch,\u201d he said.\nHowever, Mr. Chanco said a possible worst-case scenario is political and government gridlock, if the runner-up challenges the results of the elections.\u00a0 \u00a0\nTom Rafferty, The Economist Intelligence Unit regional director for Asia, said Mr. Marcos would likely continue the \u201cbroadly pro-market\u201d policy agenda set by President Rodrigo R. Duterte such as the infrastructure push, tax incentives for businesses and removal of barriers to investments.\nIn a note released on Monday, Mr. Rafferty said the biggest risk to Mr. Marcos\u2019s presidency will be the execution of his policy agenda.\n\u201cFailure to navigate the oft-fractious parliament and adequately deliver progress on major business-friendly reform and infrastructure upgrade amid an ongoing pandemic, which will require consummate political and communication skills, could jeopardize the country\u2019s hitherto impressive recent growth trajectory and trigger a sudden reversal of fortune and ensuing political volatility in 2023,\u201d he said.\nUniversity of Asia and the Pacific economist Cid L. Terosa said in an e-mail that the winner of the presidential elections would matter to markets in the short run \u201cbut the business and market environments that the next president will weave matter more in the long run.\u201d\n\u201cWhile we can argue that a (Marcos) presidency will be met by markets and investors with more intense apprehension than a Robredo presidency, (Marcos\u2019s) possible ascent to the presidency will give him the opportunity to either dispel doubts or magnify qualms. Since investors and markets are generally forward-looking, (Marcos) must exert effort to give them a good future. If he can do this, the past won\u2019t matter to investors and markets,\u201d Mr. Terosa said.\nThe next administration will inherit an economy whose growth momentum is challenged by inflation and fiscal issues, he added.\n\u201cWill his administration accelerate or decelerate the growth momentum? It will all depend on the economic decisions (Marcos) will make in the first three to six months of his presidency,\u201d Mr. Terosa said. \u2014 Luz Wendy T. Noble with inputs from Tobias Jared Tomas", "date_published": "2022-05-10T00:33:03+08:00", "date_modified": "2022-05-09T19:41:41+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2022/05/crowd-election-voters.jpg", "tags": [ "Luz Wendy T. Noble", "Tobias Jared Tomas", "Editors' Picks", "大象传媒" ], "summary": "THE PHILIPPINES\u2019 next president needs to immediately address rising inflation and fiscal issues, as the economy recovers from a coronavirus pandemic and the Russia-Ukraine war, analysts said.\u00a0" }, { "id": "/?p=447316", "url": "/top-stories/2022/05/10/447316/mufg-sees-phl-economy-growing-by-6-5-this-year/", "title": "MUFG sees PHL economy growing by 6.5% this year", "content_html": "By Luz Wendy T. Noble, Reporter
\nTHE PHILIPPINE ECONOMY is likely to grow faster than expected this year, although China\u2019s slowdown could be a downside risk to the country\u2019s economic expansion, MUFG Bank said.
\nIn a note released on Monday, MUFG said it now expects Philippine gross domestic product (GDP) to expand by 6.5% this year, from its previous forecast of 6%.
\nThis is still below the 7-9% target set by economic managers.
\nMUFG Bank analyst Sophia Ng said they would be reviewing their growth outlook for the Philippines in view of the economic slowdown in China due to its zero-COVID policy and strict lockdowns.
\nThis could have a direct impact on the Philippines because China is the country\u2019s biggest trading partner.
\n\u201cA reduction in demand from China will have a negative impact on the Philippines\u2019 overall export growth, and the supply crunch will also raise import prices of goods in general, resulting in wider trade deficits in the coming months,\u201d Ms. Ng said in an e-mail.
\nFor the first quarter, MUFG said Philippine economic output likely expanded by 6.8%.
\nIf realized, this would be slower than the 7.8% growth in the October to December period, but would still mark the fourth consecutive quarter of growth for the economy.
\nIt also compares with a 大象传媒 poll of 17 analysts that yielded a median estimate of 6.7% GDP growth for the first three months.
\nFirst-quarter GDP data will be released on May 12.
\nMs. Ng said their first-quarter GDP estimate took into account the slower rise in consumption as mobility restrictions were tightened during the Omicron surge in January.
\nMetro Manila and some provinces were placed under Alert Level 3 to contain rising infections.
\nRestrictions were eased to Alert Level 2 by February, and to the most relaxed Alert Level 1 by March.
\nMs. Ng said another factor that likely eased growth in January to March was the large drop in net exports due to a bigger trade deficit.
\nThe trade gap widened to $13.892 billion in the first quarter from the $8.345-billion deficit a year earlier, the Philippine Statistics Authority reported on Friday.
\nThe Philippine economy grew by 5.7% in 2021, after a record 9.6% contraction in 2020.
\n", "content_text": "By Luz Wendy T. Noble, Reporter\nTHE PHILIPPINE ECONOMY is likely to grow faster than expected this year, although China\u2019s slowdown could be a downside risk to the country\u2019s economic expansion, MUFG Bank said.\nIn a note released on Monday, MUFG said it now expects Philippine gross domestic product (GDP) to expand by 6.5% this year, from its previous forecast of 6%.\nThis is still below the 7-9% target set by economic managers.\nMUFG Bank analyst Sophia Ng said they would be reviewing their growth outlook for the Philippines in view of the economic slowdown in China due to its zero-COVID policy and strict lockdowns.\nThis could have a direct impact on the Philippines because China is the country\u2019s biggest trading partner.\n\u201cA reduction in demand from China will have a negative impact on the Philippines\u2019 overall export growth, and the supply crunch will also raise import prices of goods in general, resulting in wider trade deficits in the coming months,\u201d Ms. Ng said in an e-mail.\nFor the first quarter, MUFG said Philippine economic output likely expanded by 6.8%. \nIf realized, this would be slower than the 7.8% growth in the October to December period, but would still mark the fourth consecutive quarter of growth for the economy. \nIt also compares with a 大象传媒 poll of 17 analysts that yielded a median estimate of 6.7% GDP growth for the first three months.\nFirst-quarter GDP data will be released on May 12. \nMs. Ng said their first-quarter GDP estimate took into account the slower rise in consumption as mobility restrictions were tightened during the Omicron surge in January. \nMetro Manila and some provinces were placed under Alert Level 3 to contain rising infections. \nRestrictions were eased to Alert Level 2 by February, and to the most relaxed Alert Level 1 by March. \nMs. Ng said another factor that likely eased growth in January to March was the large drop in net exports due to a bigger trade deficit. \nThe trade gap widened to $13.892 billion in the first quarter from the $8.345-billion deficit a year earlier, the Philippine Statistics Authority reported on Friday.\nThe Philippine economy grew by 5.7% in 2021, after a record 9.6% contraction in 2020.", "date_published": "2022-05-10T00:32:03+08:00", "date_modified": "2022-05-09T19:35:34+08:00", "authors": [ { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" } ], "author": { "name": "大象传媒", "url": "/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/fc38d2668fdee8f1e2b22df5e72ae6f4ad265ab7814de4aa60060edd377a70ce?s=512&d=mm&r=g" }, "image": "/wp-content/uploads/2022/05/dinein-restaurant.jpg", "tags": [ "Featured2", "Luz Wendy T. Noble", "Editors' Picks", "大象传媒" ], "summary": "THE PHILIPPINE ECONOMY is likely to grow faster than expected this year, although China\u2019s slowdown could be a downside risk to the country\u2019s economic expansion, MUFG Bank said." } ] }