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DILG lauds SC ruling on LGUs’ share in taxes

THE Department of Interior and Local Government(DILG) lauded a ruling this week by the Supreme Court (SC) that will increase the share of local government units (LGUs)from all national taxes.
DILG OIC-Secretary Eduardo M. Ano in a statement welcomed the SC’s decision last Tuesday, saying it “will spell a huge increase in Internal Revenue Allotment (IRA) of LGUs because they will also get their slice of the pie from the national tax collection of other agencies other than the Bureau of Internal Revenue.”
But Finance Secretary Carlos G. Dominguez III said on Thursday the ruling was still an “unverified rumor” pending the “signature of the justices.”
“We are glad of the Supreme Court’s ruling because this will lead to better financial standing of our LGUs,” Mr. Año said.
The decision ruled that LGU’s just share is based on all national taxes, and not only on national internal revenue taxes.
“This means that LGUs will now get a share of customs tariffs and taxes collected by other state agencies such as the Bureau of Customs,” the DILG statement said.
Mr. Año encouraged LGUs to utilize the additional IRA on projects that are in line with national goals such as the “Build Build Build, anti-illegal drugs, anti-criminality and anti-corruption.”
“The increase in IRA, which has already been evident since President Duterte’s term plus the SC ruling, means better chances for the local governments to create positive change within their jurisdiction, especially in addressing illegal drugs and other social needs,” he added.
He also said LGUs’ programs, projects and activities should be aligned with AMBISYON NATIN 2040, the 2030 Agenda for Sustainable Development, and the President’s 10-Point Socio Economic Agenda as stated in Executive Order No. 27.
“This is a step in the right direction. Through this decision, our LGUs will have a taste of how more resources are distributed across all regions of the country,” Mr. Año said. — G.M. Cortez

Lawmakers eye rice imports amid 5.2% inflation

rice sacks
AFP

By Charmaine A. Tadalan
“Kung mayroong intervention ang gagawin, isa sa pinakamahalaga ay ang pagpasok ng murang bigas. (If there should be an intervention, it should be importing cheap rice),” Senate Economic Affairs Committee Chair Sen. Sherwin T. Gatchalian said in a radio interview Friday.
“Importante ang bigas, isa sa dahilan kung bakit tumaas ang presyo ay ang kawalan ng (Rice is important. One of the reasons behind increased prices is the shortage of) NFA (National Food Authority) rice,” the senator said.
For his part, Representative Arthur C. Yap, who chairs the House Economic Affairs Committee, called for the quick passage of the Rice Tarrification Act.
“With the inflation rate breaching higher end targets, Congress must now pass the Rice Tarrification Act,” Mr. Yap said in his statement Thursday. “Our people need the breathing spell to contend with the high prices of rice brought about by the lack of NFA buffer stocks and the weak peso.”
Further, Mr. Yap called on the Bangko Sentral ng Pilipinas (BSP) to increase interest rates to stabilize the situation as well as for the government to increase cash transfers to vulnerable sectors.
“If releases will be conditional, then they must be conditioned on skills training for beneficiaries in the manufacturing and construction sectors which are fundamentally expanding,” Mr. Yap said.
He added: “The Build, Build, Build program must continue focused and unabated to balance possible impacts to growth should the private sector delay their investments due to the BSP rate hikes.”
As for the excise tax, Senator Gatchalian said suspending it will be the government’s last resort. “Ito ay minominitor naming mabuti at kung (We are strictly monitoring this and if) worse comes to worst at magkakaroon ng (and there will be) runaway inflation, we will have to strongly recommend (suspending) excise tax on fuel,” Mr. Gatchalian said.
Meanwhile, the NFA in a statement Friday said it has reactivated its retail outlets at the Barangay Food Terminals (BFTs) with the arrival of rice from Vietnam and Thailand.
“As of today, there are 76 NFA rice outlets in BFTs nationwide actively operating serving at least 500 families. These outlets get…from five to 35 bags per week and sell three to ten kilograms of rice per customer,” the NFA said.
“At present, BFTs are operational in Benguet, Kalinga, Masbate, Camarines Sur and Camarines Norte, Albay, Cavite, Davao del Sur, Davao Occidental, General Santos, North Cotabato, Sultan Kudarat, Caraga, and some parts of Metro Manila,” the agency said further.

Applications for intellectual property rise 14% in Q1

LOCAL applications for intellectual property saw a 14% annual increase during the first quarter of the year amid expanding awareness over the importance of protecting trademarks for businesses.
The Intellectual Property Office of the Philippines (IPOPHL) said applications for patents — which cover inventions, utility models, and industrial designs — and trademarks totaled 10,024 in the January to March period this year, above the 8,761 logged in the comparable period last year.
Of this, trademarks represented 84% at 8,400 applications, increasing 12.56% from last year’s 7,463.
Resident filings took up the bulk at 60% and the remaining 40% were from non-residents.
Trademarks serve as “source identifiers,” meant to distinguish goods or services of one business from those of another, and can be a significant marketing tool for enterprises to establish brand recognition.
Meanwhile, the application for a patent for inventions grew 38% to 986 from 717 a year ago; the patent for utility models surged 59% to 331 from 208. But the patent for industrial design declined 18% to 307 from 373.
A patent is a bundle of exclusive rights granted to an invention, a product, or a process or improvement of either that meets the requirements of industrial applicability, inventiveness, and novelty.
As a bundle of exclusive rights, a patent allows the inventor to allow or prohibit others from making, using, selling, or importing the product of his invention during the patent’s period.
Meanwhile, utility models are designed to protect innovations that need not meet the inventive threshold required for a standard patent application.
It must, however, still have practical utility, industrial applicability, and novelty. The utility model grants similar exclusive rights as with patents, but have fundamental differences in terms of length of examination, cost, and scope of protection.
An industrial design protects the ornamental or aesthetic aspect of an article, and is also an owner’s exclusive right against unauthorized copying or imitation of the design.
The term of protection of a patent is 20 years, a longer period of protection than that of a utility model, which is protected for seven years.
The term of protection of an industrial design is five years, renewable twice for the same period of time.
“The rise of intellectual property applications reflects the spreading awareness among the public of the importance of trademarks, due to our key partnerships with media, the Department of Trade and Industry, and other strategic partners. Apart from this collaboration, IPOPHL’s strategic presence has steadily been gaining traction on our social media platforms,” IPOPHL Director General Josephine R. Santiago said.
“Of course, these efforts are underpinned by the growing understanding, appreciation, and relevance of trademarks among micro, small, and medium enterprises (MSMEs), ultimately driving the increased demand for protection,” she added. — J.C. Lim

DA chief bares $2.43-million grant from South Korea for greenhouse projects

By Janina C. Lim, Reporter
THE Department of Agriculture (DA) has received from the South Korean government a grant to be used in beefing up smart greenhouse projects that will improve domestic tomato production.
Agriculture Secretary Emmanuel F. Piñol said the agency signed a memorandum of agreement with the Korea Agency for Education, Promotion and Information Service in Food, Agriculture, Forestry and Fisheries (EPIS) for a $2.43 million grant.
This will go to the K-Smart project which aims to boost production among small to medium-scale farmers.
It also targets to give farmers a broader market access through co-branding initiatives and help them take advantage of shipping their produce across the country.
The first 18 K-Smart Greenhouses will be put up in Benguet Province to produce high value vegetables, especially tomatoes.
The project will be implemented with the assistance of the Korean International Cooperation Agency (KOICA).
“As the DA Secretary, I have committed that as soon as high value vegetable farmers confirm the effectiveness of the Smart Greenhouses in increasing their productivity, I will propose the inclusion of the program for more greenhouses in the 2020 Budget of the DA,” Mr. Piñol said in a Facebook post on Friday.
The deal comes after President Rodrigo R. Duterte’s visit last month to South Korea where he held bilateral talks with President Moon Jae-in.
In that meeting, the DA signed a P28-billion supply contract with South Korean supermarket chain, Emart. The supermarket will be supplied various fruits over the next three years.
The grant is apart from a planned investment by the Korean Agricultural Machinery Industry Cooperative (KAMICO), a group of 200 firms. The group said it needed a 50-hectare area for the assembly plant which would manufacture tractors and other farm machinery.
The Bases Conversion Development Authority has already committed such a site at the Clark Development Zone for the KAMICO Project, according to the DA chief.
Mr. Piñol also noted that Trade Secretary Ramon M. Lopez has also pledged to support the project by asking the Board of Investments to provide incentives to KAMICO.

Poll shows Manila with one of lowest 4G speeds in region


By Patrizia Paola C. Marcelo, Reporter
MANILA has one of the lowest fourth generation (4G) download speeds in East and Southeast Asia, a mobile analytics company said.
OpenSignal said Manila is part of the lowest grouping of cities in the region in terms of 4G download speed, ranking 9th out of 12 Asian metropolises for the survey period of March to May 2017.
Joining Manila for having 4G speeds below the global average of 16.9 megabits per second (Mbps) are Hong Kong and Kuala Lumpur (with speeds above that of Manila); and Bangkok, Phnom Penh, and Jakarta (with speeds below that of Manila).
The company did not disclose all the numbers in the said test period.
OpenSignal said the reasons for these results is the trend in Southeast Asia focusing on 4G availability rather than 4G speed.
“As 4G connections are far superior to 3G connections, Southeast Asia’s operators seem intent on making LTE [long-term evolution] services accessible to the vast majority of their customers before they turn their attention to raw speed,” OpenSignal said.
Singapore and the South Korean capital of Seoul led the rankings, recording speeds of 45 Mbps, placing them in among the highest ranking globally.
Following them are Taipei, Yangon, Tokyo, and Ho Chi Minh, with download speeds of over 25 Mbps.
The high speeds of Yangon and Ho Chi Minh are due to the recent launching of 4G services in Myanmar and Vietnam.
“Both Vietnam and Myanmar only launched commercial 4G services within the last two years, which perhaps explains why they’re delivering such fast connections. As countries ramp up their first LTE networks, they initially have few customers and large amounts of capacity. As consumers adopt 4G phones and 4G service plans, they begin filling up those networks, causing speeds to gradually decline,” OpenSignal said.

‘Third player’ hearing shows service commitments favored — DICT

By Victor V. Saulon, Sub-Editor
TELECOMMUNICATIONS industry stakeholders expressed a preference for service level commitments as the basis for selecting the industry’s third entrant, according to the results of a public consultation Friday.
The Department of Information and Telecommunications Technology (DICT) said 75% of representatives from telecommunications companies, consumer groups, and the public picked highest committed level of service, or HCLoS, as the main selection standard.
The other proposed basis for selection, a frequency auction, was supported by 16.67% of participants at the consultation, while 8.33% abstained.
The selection process has seen the emergence of two proposed terms of reference (ToR), one based on HCLoS favored by the DICT and another based on an auction backed by the Department of Finance (DoF).
The HCLoS standard is a points system for milestones like population coverage, broadband speed and investment within five years, with the points weighted to favor hitting certain milestones earlier in the five-year period.
The DoF, which is a member of the oversight committee for third-player selection, has declared its opposition to a process involving the assignment of points for meeting certain commitments — the so-called “beauty contest,” and has declared that state assets such as frequency spectrum must be auctioned instead of allocated to the third player at no charge.
Acting DICT Secretary Eliseo M. Rio, Jr. said the vote was a way to take the pulse of stakeholders, including would-be investors.
“With this result we hope to move forward (with finalizing) the terms of reference for the HCLoS,” he told participants at the public consultation.
He said the next step is to come up with a report that he would present to the oversight committee, which is composed of representatives from the DICT, DoF, Office of the Executive Secretary, and the National Security Adviser.
Mr. Rio described the report as a result of a market study that paves the way for the department to go ahead with the process.
“If everything goes well, and are no major setbacks, we can have the third telco by end of September or early October,” he told reporters.
The process he was referring to involves the National Telecommunications Commission publishing the final version of the ToR.
“And then this (ToR) will be subjected to another public hearing, but this one will now be formal. It has the same weight as when you are testifying in court,” he said.
The public hearing will incorporate further improvements to the ToR, which will become final about 30 days after the first publication in a newspaper of national circulation. After 15 days, a series of public hearings will help shape the final version of the ToR.
“That will start the bidding process,” he said. “The contenders now can buy the bidding documents and they will be based on the terms of reference.”
“We’ll give them two months to come up with their bidding documents. That is the time that they will start to form their consortium,” he added.
Mr. Rio said the 15 telcos that participated represented companies with existing telecommunications franchises. He said these entities lack the experience and need for them to partner with foreign companies.
“Right now we have about five foreign companies [that] are interested so they can chose among the 15 [telcos],” he said.
He said he hopes there will be no strong objections to HCLoS going forward.
Asked about a possible conflict with the preference of Finance Secretary Carlos G. Dominguez III for an auction, Mr. Rio said: “This is a DICT affair. In other words, I have full responsibility and therefore I have to decide that I have to go forward because I am being instructed also by the President.”
He said Mr. Dominguez is welcome to come up with his own position “but more or less as far as the DICT is concerned, we have I think enough data, we have enough encouragement to go ahead with the highest committed level of service.”
Sought for comment, Renato B. Garcia, executive vice-president of Philippine Telegraph and Telephone Corp., said he favors HCLoS.
“Any telecom guy will tell you, when you do network planning it’s always the least-cost solution… And all these other proposals [are] contrary to the basic principle,” he said.
Asked if PT&T will submit a bid, he said: “Of course.” He added that the company will need a foreign partner with the technical expertise.
“All of those are under discussion,” he said. “We’re talking to all — American, European, Chinese… Korean.”
Victorio Mario A. Dimagiba, who heads consumer advocacy group Laban Konsyumer Inc., said he prefers HCLoS because the third player will be able to compete if it offers consumers improved services compared with incumbents Smart Communications, Inc., a unit of PLDT, Inc., and Globe Telecom, Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls.

Globe forming new cell tower company

GLOBE Telecom Inc. said it is establishing a new company to operate its tower assets.
The telecommunications company said in a statement that it has begun the process of incorporating a separate tower holding company. After it obtains approval from the Securities and Exchange Commission (SEC), the company will begin divesting all or some of its tower assets.
In February, Globe said it was in talks with certain parties to form an independent tower company to help speed up the building and deployment of cellular towers.
“As a major industry player we understand what this country needs to improve the internet experience of our customers. Putting up more towers based on global standards within strategic areas will make spectrum use more efficient. We should work together and find all means to supplement the build for towers — either through telcos or tower companies. This in turn will bring us closer to first world internet connectivity,” Globe President and CEO Ernest L. Cu said in a statement.
Mr. Cu added that the company remains open to working with new and existing telecom companies in the interest of national development.
Globe has said that it was open to working with rival PLDT, Inc. on the initiative. PLDT has said that the company does not see a need to share any of its network assets.
The government on Thursday released its initial common tower policy and pole guidelines, and hopes to accredit up to two independent tower companies by the first quarter of next year, followed by a six-month building period. Globe and PLDT will also be consulted regarding their target locations for placement of the towers and poles, to be shared by telcos including the upcoming “third player.”
Each accredited company can build a total of 25,000 towers over seven years. The Philippines has only 16,000 cell sites for a population of around 100 million. Presidential Adviser for Economic Affairs and Information Technology Communications Ramon P. Jacinto has said that the country will need about 50,000 towers for better coverage.
The initial policy allows telcos to build their own cell sites if they do not get a response from the tower company or companies after 30 days. This is a change from a previous plan of the government to prohibit telcos from building their own cell sites once the policy is implemented. Mr. Jacinto said consultation revealed opposition from PLDT and Globe, who wanted to retain the right to build their own cell sites.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Patrizia Paola C. Marcelo

PSE review finds 62 firms Shariah-compliant

THE Philippine Stock Exchange said it classified 62 securities as compliant with Islamic finance principles, as of June 25.
In its quarterly review released Friday, the PSE said the compliant stocks include 2GO Group, Inc., D&L Industrues, Inc. and MRC Allied, Inc.
The new entrants to the list for this quarter are Concrete Aggregates Corp. (A and B), Golden Bria Holdings, Inc., Ionics, Inc., Nickel Asia Corp., Philippine Estates Corp. and STI Education Systems Holdings, Inc.
Dropped from the list were Araneta Properties, Inc., Cirtek Holdings Philippines, Corp., Golden Haven Park, Inc., Italpinas Development Corp., Keppel Philippines Properties, Inc. and Primex Corp.
The PSE engaged IdealRatings, Inc. to conduct the screening of the listed firms, in accordance with the Accounting and Auditing Organization for Islamic Finance Institutions standards for Shariah compliance.
Islamic finance principles disallow firms from engaging in businesses tht involve conventional interest-based lending. The restrictions also cover other financial services like insurance, mortgages and leasing, and derivatives. Other restrictions apply to companies that deal in pork, alcohol, tobacco, arms and weapons, embryonic stem-cell research, hotels, gambling, casinos, music, cinema, and adult entertainment, among others. — Janina C. Lim

June GIR declines to lowest level since 2011

GROSS international reserves (GIR) continued to decline at the mid-year point to their lowest level in nearly seven years, with the central bank continuing to intervene in the foreign exchange market to defend the peso.
The Banko Sentral ng Pilipinas (BSP) reported on Friday that GIR declined 1.92% month-on-month to $77.675 billion in June. The indicator fell 4.48% from a year earlier.
This was the lowest level since the $75.302 billion GIR recorded in December 2011.
“The month-on-month decline in the GIR level was due mainly to outflows arising from the foreign exchange operations of the BSP, revaluation adjustments on the BSP’s gold holdings resulting from the decrease in the price of gold in the international market, and payments made by the National Government (NG) for its maturing foreign exchange obligations,” the BSP said in a statement.
The central bank sometimes intervenes in the foreign exchange market to temper sharp swings during the daily peso-dollar trading sessions.
“These were partially tempered by the NG’s net foreign currency deposits as well
as the BSP’s income from its investments abroad,” the BSP added.
The central bank’s gold holdings fell to $7.913 billion last month from $8.197 billion in May. They rose from the year-earlier $7.835 billion level.
The BSP’s offshore investments decreased to $62.455 billion in June from $63.924 billion in the previous month, and fell from $68.16 billion in June 2017.
Foreign currency holdings rose to $5.615 billion from $5.46 billion in May and $3.695 billion a year earlier.
Reserves held under the International Monetary Fund (IMF) grew to $489.6 million last month from $418.7 million in May and $452.8 million a year earlier.
Special drawing rights, or the amount which the Philippines can tap under the IMF’s reserve currency basket, were steady at $1.203 billion.
“At this level, the GIR nonetheless continues to serve as an ample external liquidity buffer and is equivalent to 7.5 months’ worth of imports of goods and payments of services and primary income,” the BSP said.
The central bank also said reserves can cover up to six times the country’s short-term external debt obligations and 4.1 times when computed in residual terms.
International reserves — which serve as buffers against external financial shocks — are composed of gold, the BSP’s assets expressed in foreign currency, IMF quotas, and foreign currency deposits held by government and state-run firms.
Sought for comment, Land Bank of the Philippines market economist Guian Angelo S. Dumalagan said that the reserve outflows may be due to the monetary policy tightening in the US, which has caused the dollar to strengthen.
“The drop in reserves can be attributed to the repatriation of foreign funds as a result of the interest rate normalization of the US. This has caused massive swings in the domestic currency, prompting the BSP to intervene,” he said in an email on Friday.
On June 28, the peso closed at P53.515 against the dollar, its weakest level in 12 years.
Mr. Dumalagan added that the current GIR levels are still at comfortable despite the continuous decline.
“I do not think that the drop warrants much concern for now. It does, however, necessitate close monitoring of our GIR level to make sure that it remains high enough to shield the country from external headwinds,” he said.
Emmaunuel A. Leyco, a professor at the Asian Institute of Management, said in a mobile phone message that the current reserves “still leave room for policy flexibility for now.”
“Key concern right now is to stabilize the peso while managing the impact of a growing inflation,” he added. — Elijah Joseph C. Tubayan

PHL signs social security deals with Germany, Japan

THE Philippines’ two major pension funds have signed social security arrangements (SSAs) with Germany and Japan to extend benefit coverage to Filipino residents of that country.
In a statement Friday, the Social Security System (SSS) said the Philippines now has SSAs with Germany and Japan, taking effect on June 1 and Aug. 1, respectively.
The bilateral SSAs will be implemented by SSS and the Government Service Insurance System (GSIS) for the Philippines and their counterpart agencies Deutsche Rentenversicherung and Japan Pension Service.
The SSAs will benefit an estimated 47,214 Filipinos in Germany and another 182,917 in Japan who work or are permanent residents of those countries.
“These bilateral SSAs [are] aimed at reducing or eliminating nationality- and territory-based restrictions on social security,” SSS President and Chief Executive Officer Emmanuel F. Dooc said in the statement.
Covered persons and their beneficiaries can receive their social benefits regardless of whether they decide to reside in the Philippines, Japan, Germany or even in another country.
“With the bilateral SSAs in place, Filipinos are now entitled to social security benefits under the same conditions applicable to nationals of Germany and Japan and we are looking forward to extend the same protection to more Filipinos working or residing abroad,” Mr. Dooc added.
Under the Philippine Social Security Law, a member must have at least 120 monthly contributions to qualify for a retirement pension.
Without the SSA, members who failed to meet the minimum number of monthly contributions will only get the total contributions paid as well as interest.
But with the arrangements, the “totalization of insurance period” allows the consolidation of contributions made in both countries.
Mr. Dooc also noted that SSS will continue to to pursue SSAs with other countries in collaboration with the Department of Foreign Affairs, Department of Labor and employment as well as other social security institutions to “promote the welfare of overseas FIlipinos and ensure social security protection in times of contingencies.”
Aside from Germany and Japan, the Philippines has bilateral SSAs with Austria, the United Kingdom, Spain, France, Canada, the Netherlands, Switzerland, Belgium, Denmark and Portugal, covering more than 1.34 million FIlipinos abroad. — Karl Angelo N. Vidal

Nat Re 2017 net profit down 35% at P50-M

NATIONAL Reinsurance Corp. of the Philippines (Nat Re) said net profit fell in 2017 due to reinsurance payouts for calamities and fires.
In a regulatory filing Friday, Nat Re said it booked a net profit of P50 million in 2017, down 35%.
The listed reinsurance firm attributed the lower profits to “massive global insured losses from catastrophe events and large single fires affecting the local non-life industry.”
“Although Nat Re’s results were not as good as one would hope, we were able to effectively safeguard the company from severe losses because of significant improvement in our portfolio diversification and our limited exposure to US and North Americal risks,” Nat Re President and Chief Executive Officer Augusto P. Hidalgo was quoted as saying in the disclosure.
In a Reuters report in April, Swiss Reinsurance Company, Ltd. (Swiss Re) estimated that global insured losses from catastrophes in 2017 hit a record $144 billion.
Swiss Re said North America was hard hit last year as hurricanes Harvey, Irma and Maria brought insured losses of $92 billion.
Nat Re said the P50 million profit was supported by an underwriting profit of P204 million.
Net written premiums grew 40% to P1.9 billion in 2017 with net written premiums in its life business rising 49%.
Nat Re posted P255 million in realized investment income last year on the back of the bullish equity market. Comprehensive investment income rose to P604 million in 2017 by 275% from the previous year.
In 2017, Nat Re said its life unit added three clients to reinsurance programs it leads.
Its non-life segment on the other hand closed 16 new contracts, increased shares in 29 renewal contracts and secured new lead insurer positions with two companies.
“[W]e endeavor to create meaningful and lasting relationships with our partners and find ways to share with them our industry knowledge and build their capabilities,” Mr. Hidalgo said.
Nat Re shares closed at P1.05 on Friday, down three centavos or 2.78%. — Karl Angelo N. Vidal

Peso flat vs. dollar in rangebound trading

THE peso ended flat against the dollar on Friday after the release of the minutes of the June meeting of the US Federal Reserve.
The peso ended Friday’s session at P53.42 against the dollar, unchanged from its close on Thursday.
The peso opened the session at P53.41, while its intraday high stood at P53.36. Its worst showing for the day was at P53.46.
Dollar volume was $506.5 million, slightly lower than the $520.5 million that changed hands yesterday.
A trader said that the peso traded “within a very tight range” on Friday following the minutes of the Fed’s rate-setting Federal Open Market Committee (FOMC).
“The peso ended flat as it traded within a very tight range. The release of the Fed minutes was not that significant,” the trader said in a phone interview.
US central bankers said during the June FOMC meeting expressed concerns that global trade tensions could hit the US economy that by most measures indicated strong performance, Reuters reported.
Many policymakers noted that the gradual hikes could take federal funds rate above the neutral level some time next year.
During its June 12-13 meeting, the Fed raised its benchmark rates by a quarter of a percentage point, the second adjustment for the year, on the back of strong economy. Federal rates are now in a range of 1.5-1.75%.
“The FOMC minutes didn’t move the market that much,” the trader said.
He added that the market is waiting for retaliatory action from China in its trade war with the US.
President Donald J. Trump has imposed tariffs on $34 billion worth of Chinese imports.
The trader added that the market will also await the non-farm payrolls data in the US to be released late Friday, Manila time. — Karl Angelo N. Vidal

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