Facebook Instagram Linkedin X Youtube
Home Blog Page 6017

PHL lags in ASEAN in first-half vehicle production 

THE Philippines trails neighboring countries in the Association of Southeast Asian Nations (ASEAN) region in terms of car production during the first six months of the year, according to the ASEAN Automotive Federation (AAF).

Latest AAF data uploaded on its website showed that the country’s motor vehicle production for the January-June period dropped 2.9% to 40,334 units from 41,527 units logged in the same period last year.

In contrast, other ASEAN countries posted production growth for the first half of the year such as Myanmar (187.1%), Malaysia, (31.8%), Vietnam (28.3%), Indonesia (28%), and Thailand (7.9%).

In June alone, the Philippines recorded a higher vehicle production volume — up by 6.2% year on year to 8,506 units.

In terms of sales, AAF data showed that Philippine car sales from January to June rose 16.7% to 154,874 from 132,767 units sold in the same period last year.

ASEAN countries that posted increased vehicle sales in the first half of 2022 include Vietnam (34.1%), Malaysia (33%), Thailand (22.6%), and Indonesia (20.8%).

Countries that had lower sales were Singapore (-34.2%) and Myanmar (-8.3%).

For the month of June, AAF data showed that Philippine vehicle sales rose 26.8% to 28,601 units from 22,550 units sold in the same month last year.

“The automotive industry recovery is progressing as new motor vehicles sales reached an upward growth trajectory in June driven by the pent-up demand from consumers amid the less-than-ideal economic conditions recorded in the same period,” Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) President Rommel R. Gutierrez said in a previous statement.

“The industry is optimistic of sustaining motor vehicle sales in its current pre-pandemic trendline in the coming months, albeit challenging amid the ongoing headwinds to the economic recovery, which continue to affect consumer confidence and overall employment,” he added.

Meanwhile, AAF data showed that Philippine motorcycle and scooter production in the first half of 2022 dropped 4.2% year on year to 431,524 units from 450,524 units last year.

Thailand also had lower motorcycle and scooter output, down 7%, while Malaysia posted a 21.2% increase.

In terms of sales, AAF data revealed that the Philippine motorcycles and scooters sales in the first six months of 2022 rose 6.1% to 763,117 units, from 719,234 units sold in the same period last year.

Other ASEAN countries also sold more motorcycles and scooters during the January-to-June period. Malaysia posted 19.7% growth, Singapore had a 4.6% increase, and Thailand recorded a 3.9% improvement.

In March, CAMPI announced that it is targeting to reach 336,000 units sold in 2022, which is a 17% improvement from the 268,488 units sold in 2021. — Revin Mikhael D. Ochave

Kia Ortigas commences operations

Kia Philippines President Manny Aligada with Kia Ortigas President Alice Lee — PHOTO FROM KIA PHILIPPINES

KIA ORTIGAS — the 41st facility of the South Korean auto marque in the country — was opened to the public last July 15.

The strategically located dealership showcases the new corporate identity, and marks another step forward for the company, which targets 50 dealerships and appointments by the end of the year.

“We aim to make Kia Ortigas a destination point for everything that Kia Philippines has to offer,” said Kia Ortigas General Manager Louie Lee. “We want to be here to take care of Kia customers. We want them to experience our brand of customer service: Delivered by the best people, with a passion to serve.”

Until Aug. 31, Kia Ortigas offers a 10% discount on parts.

“We are grateful for the trust and confidence that the owners of Kia Ortigas have given us,” joined Kia Philippines President Manny Aligada. “We believe that they will be a significant player in the entire dealer network to make Kia among the major drivers in the local automotive industry.”

Among those present during the inauguration of the facility was Cainta Mayor, Attorney Elenita Nieto. Two units of the best-selling Kia Stonic were also turned over to their new owners during a formal ceremony that day.

Kia Ortigas is located in Celilu Compound, Km 17 Ortigas Avenue Extension, Santo Domingo, Cainta, 1900 Rizal. It is open from 9 a.m. to 6 p.m. For more information, contact Kia Ortigas at (02) 8639-4854 or (+63) (950) 936-9089 or email kiaortigasext@gmail.com; visit www.kia.com; and follow the Kia Philippines Facebook page and Instagram account.

LANDBANK lends P75M to finance banana farm rehab

THE Land Bank of the Philippines (LANDBANK) said it lent P75 million to Reicher Banana Farm, Inc. (RBFI) to help it recover from Panama disease.

“RBFI availed of a P75-million loan from LANDBANK in 2018 to supplement working capital and purchase the necessary inputs and equipment for rehabilitation,” LANDBANK said.

“After two years of rehabilitation, RBFI fully recovered from the plant disease and is now harvesting around 10,000 boxes of produce a week — a 100% increase from the previous production of 5,000 boxes a week,” it added.

In 2013, the farm’s 74-hectare banana plantation was hit by the plant disease. Panama disease infested Cavendish plantations throughout Davao de Oro and nearby areas.

“LANDBANK recognizes the importance of each subsector of agriculture to ensure food security. Through accessible credit assistance, we stand ready to support the diverse requirements of agri players to boost production and income,” LANDBANK President and Chief Executive Cecila C. Borromeo said.

RBFI also used a portion of the LANDBANK loan for land expansion and modernization, including the purchase of a digital system for logging banana numbers per bunch, weight, age, and location in the plantation.

“With the data, RBFI can digitally monitor the health of the crops and accurately distribute farm inputs such as fertilizer, thereby helping the company save on costs. The generated data also allows RBFI to forecast harvests within a given season,” it added.

RBFI has since expanded its plantation to 130 hectares and generates employment for around 220 residents. The banana harvest is exported to South Korea, China, and the Middle East.

As of June, LANDBANK’s loan portfolio to support the banana industry totaled P1.49 billion. — Luisa Maria Jacinta C. Jocson

T-bill, bond rates to move sideways on Fed bets

BW FILE PHOTO

RATES of government securities on offer this week may move sideways on expectations of a less hawkish US central bank amid recession fears, with longer tenors to attract most of the demand as investors seek higher returns.

The Bureau of the Treasury (BTr) will offer P15 billion in Treasury bills (T-bills) on Monday, made up of P5 billion each in 91-, 182-, and 364-day debt papers.

On Tuesday, the BTr will auction off P35 billion in fresh 3.5-year Treasury bonds (T-bonds).

Traders said the papers on offer could fetch steady or marginally lower rates due to expectations of less aggressive tightening by the US Federal Reserve moving forward.

“Market players are currently betting on less aggressive rate hikes by the US Federal Reserve due to foreseen global economic slowdown,” the first trader said.

The first trader expects T-bill rates to move sideways or lower by about 5 basis points (bps).

The second trader said T-bill yields will likely be steady from the previous auction as there is tepid interest in short-term tenors.

“The demand really is coming from rollover of maturities, so these investors would rather buy the 3.5-year paper,” the second trader said.

Both traders expect the fresh bonds on offer on Tuesday to fetch yields ranging from 5.5% to 5.75%.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said T-bill yields could rise and T-bond rates could decline to track secondary market levels.

He said this is due to the Fed’s widely expected rate hike last week and expectations of more increases in the US and at home.

At the secondary market, the rates of the 91-, 182-, and 364-day T-bills went up by 13.19 bps (to 2.2683%), 14.92 bps (2.8857%), and 14.05 bps (3.2775%), respectively, week on week, PHP Bloomberg Valuation Service (BVAL )Reference Rates published on the Philippine Dealing System’s website showed. Meanwhile, the three-year bond fetched a yield of 5.1993%, down by 10.42 bps from the week prior.

The Fed last week raised its key rates by 75 bps for the second straight meeting, as expected, to temper rising inflation. To date, the Fed has raised its policy rates by a total of 225 bps.

Meanwhile, Bangko Sentral ng Pilipinas (BSP) Governor Felipe M. Medalla last week signaled an interest rate hike of 25 or 50 bps at their Aug. 18 meeting, although he ruled out another off-cycle increase.

In a surprise move, the BSP raised its benchmark rates by 75 bps on July 14 as it sought to contain broadening price pressures. The Monetary Board has raised benchmark interest rates by a total of 125 bps so far this year as inflation continues to remain elevated.

A BusinessWorld poll of 14 economists last week yielded a median estimate of 6.2% for July headline inflation, within the BSP’s forecast of 5.6% to 6.4% for the month.

If realized, this would be faster than the 6.1% reading in June as well as the 3.7% posted the same month last year. It would also mark the fourth straight month that inflation went above the central bank’s 2-4% target this year.

Headline inflation averaged 4.4% as of June, still below the BSP’s full-year forecast of 5%.

Last week, the BTr raised just P13.75 billion from its auction of T-bills versus the P15-billion program, even with bids reaching P38.84 billion or more than twice the planned amount. 

Broken down, the Treasury made a full P5-billion award of 91-day securities as the tenor attracted P20.574 billion in bids. The average rate of the tenor inched down by 5 bps to 2.273%. Accepted rates ranged from 2.22% to 2.295%.

The government also made a full P5-billion award of 182-day securities as tenders reached P12.12 billion. The average rate of the tenor went up by 5.9 bps to 3.142%. Accepted rates ranged from 3% to 3.2%.

Meanwhile, the BTr borrowed just P3.75 billion from the 364-day debt papers out of the P5-billion program, even with demand reaching P6.15 billion. The tenor’s average rate rose by 9.8 bps to 3.356%, with the government accepting offers ranging from 3.25% to 3.5%.

On the other hand, the government last month made full awards of all its T-bond offerings on the back of robust demand for higher-yielding longer tenors amid expectations of higher interest rates due to mounting inflationary pressures.

The Treasury wants to raise P215 billion from the domestic market this month, or P75 billion through T-bills and P140 billion via T-bonds.

The government borrows from local and external sources to help fund a budget deficit capped at 7.6% of gross domestic product this year. — D.G.C. Robles

Katips: The Movie wins big at the 70th FAMAS Awards

CAST of the musical drama Katips: The Movie receiving the award for best picture. — PHOTO FROM FACEBOOK.COM/FAMASOFFICIALPAGE/

A FILM about the tribulations of student activists during Martial Law was the big winner at the 70th Filipino Academy of Movie Arts and Sciences (FAMAS) Awards awarding ceremony on July 30 at the Metropolitan Theater in Manila.

The musical drama by Philstagers Films won seven awards of its 17 nominations including Best Director, Best Actor, and Best Picture.

Katips: The Movie is a musical drama adapted from the 2016 stage musical Katips: Ang Mga Bagong Katipunero. Written and directed by lawyer Vince Tañada, who also stars in the film, the story follows a group of rebels, led by student leader Greg (played by Jerome Ponce), subversive writer Panyong (Mr. Tañada), and Alet (Adelle Ibarrientos), and their efforts to keep up the fight against the dictatorship even when the odds seem against them. The film will premiere in cinemas nationwide on Aug. 3.

Katips: The Movie is Mr. Tañada’s first film. “This is the first film I produced using the hard-earned money I saved as a lawyer,” he said in English and Filipino as he accepted his trophy for Best Director.

Mr. Tañada, who also won the Best Actor award for Katips, took up theater arts studies in New York and returned to the Philippines to finish his law studies.

“I told my parents that I want to follow my passion for theater arts. That’s why I founded Philippine Stagers Foundation where I directed and wrote for 30 years,” Mr. Tañada in English and Filipino.

“I really need to do this film because it is only through films that I will be immortalized as an artist,” he said.

FAMAS also conferred special awards that night, including Natatanging Alagad ng Sining to newly conferred National Artists Ricky Lee and Nora Aunor. Ms. Aunor also received the Susan Roces Celebrity Award at the same event. A Lifetime Achievement Award was given to Tessie Agana. Allen Dizon (for Best Actor), and Jess Navarro (for Best Editing) were entered into the Hall of Fame. The Dr. Jose R. Perez was awarded to director Moira Lang, and the German Moreno Youth Achievement award was given to sibling dancers and content creators Ranz and Niana Guerrero. The first Angelo “Eloy” Padua Memorial Award was awarded to Renz Spangler for Journalism.

Meanwhile, the FAMAS Presidential Award was given to Quezon City 5th District Representative Patrick Michael Vargas; the Outstanding Public Service Award to Pangasinan 4th District Representative Christopher “Toff” De Venecia; the Exemplary Award on Public Service to Senator Imee Marcos; and the FPJ Memorial Award to Senator Jinggoy Estrada.

The event was hosted by Inka Magnaye.

The FAMAS Awards is considered the oldest existing award-giving body in the Philippines and one of the oldest in Asia, having started in 1953. The awards are given by the Filipino Academy of Movie Arts and Sciences, an organization composed of writers and movie columnists.

Below is the complete list of winners:

Best Picture — Katips (Philstagers Films)

Best Director — Vince Tañada for Katips

Best Actress — Charo Santos-Concio for Kun Maupay Man It Panahon

Best Actor — Vince Tañada for Katips

Best Supporting Actor — Johnrey Rivas for Katips

Best Supporting Actress — Janice de Belen for Big Night

Best Screenplay — Jun Lana for Big Night

Best Cinematography — Manuel Abanto for Katips

Best Production Design — Whammy Alcazaren for Kun Maupay Man It Panahon

Best Editing — Law Fajardo for A Hard Day

Best Musical Score — Pipo Cifra for Katips

Best Original Song — “Manhid and Sa Gitna ng Dulo” — Katips (Music: Pipo Cifra, Lyrics: Vince Tañada)

Best Sound — Albert Michael Idioma, Alex Tomboc, Pietro Marco Javier for A Hard Day

Best Visual Effects — Santelmo Studio for My Amanda

Best Short Film — See You George! by Mark Moneda —  MAPS

Alliance Towers: Investment from Indonesia-based tower company to boost expansion

COMMON tower provider Alliance Towers Corp. hopes to bag more contracts with the country’s mobile network operators after a major investment from an Indonesia-based tower company.

“Hopefully (we can build) another 250 (towers) for them,” Alliance Towers President and Chief Operating Officer Alvin D. Tolentino told BusinessWorld in a recent phone interview.

The company is currently committed to build 250 towers for the country’s three major telecommunications companies.

“Of the total, more than a hundred are ongoing,” Mr. Tolentino said.

“These are concentrated in the Visayas and Mindanao, and we also have in South Luzon.”

In July, Indonesia-based tower company Bersama Digital Infrastructure Asia and investment company Opti-Teknology Philippines, Inc. committed to subscribe to new shares in Alliance Towers. Opti-Teknology’s shareholders are the founders of Alliance Towers.

The transaction is targeted to complete in September.

“Bersama Digital and Opti-Teknology will own 51% and 49% of Alliance Towers, respectively,” Tower Bersama Group and Alliance towers said in a joint statement.

“Tower Bersama has organically built over 12,000 of its nearly 21,000 towers in Indonesia, making it one of the world’s leading organic tower builders,” they said.

Mr. Tolentino said Bersama Digital will provide Alliance Towers with long-term technical and financial support.

“At the same time, the creditors will rate us higher, because as Alliance Towers with no track record to show, the banks are quite careful in terms of lending, and our credit rating is not as good, but having a shareholder that has 20 years of experience gives us credibility and makes our financial credit rating higher,” he explained.

The company hopes to expand in tandem with the telecommunications companies such as Globe Telecom, Inc., PLDT, Inc., and DITO Telecommunity Corp.

“From my meetings with all the mobile network operators, they are moving all of their expansions to the common towers because it really makes sense for everybody. It will all result in efficiency, and if it’s efficient then it will result in better quality and cheaper costs for consumers,” Mr. Tolentino added. — Arjay L. Balinbin

Geely PHL opens dealership in Dumaguete City

IMAGE FROM GEELY PHILIPPINES
IMAGE FROM GEELY PHILIPPINES

GEELY official local distributor Sojitz G Auto Philippines Corp. (SGAP) announced the opening of Geely Dumaguete, in Central Visayas at the heart of Negros Oriental.

An addition to the Gateway Group’s Geely showrooms, Geely Dumaguete is a 971-sq.m. facility that can accommodate six cars for display and has four work bays for service. The outlet is located at Poblacion, Sibulan, Negros Oriental, Dumaguete City.

“Dumaguete is definitely one of the best places to put up a Geely outlet in order to capture the increasing vehicle demand supported by its booming tourist attractions. I would like to congratulate the Gateway Group for opening yet another dealership in the Visayas region. Starting with just one outlet, it quickly expanded to multiple outlets nationwide. The firm confidence in Geely pushes us to further get this young brand achieve greater heights,” said SGAP President & CEO Yugo Kiyofuji in a release. For more information, customers may reach Geely Dumaguete at 0906-242-8706 or sales.geely.dumaguete@gatewaygroup.com.ph.

Lloyd’s of London’s Ascot, Marsh provide insurance for Ukraine Black Sea corridor

REUTERS

LONDON — Lloyd’s of London insurer Ascot and broker Marsh on Friday launched marine cargo and war insurance for grain and food products moving from Ukrainian Black Sea ports, removing a hurdle to getting shipments underway.

Russia and Ukraine signed a deal last week, brokered by Turkey and the United Nations, to reopen grain and fertilizer exports that have been blocked by war to ease an international food crisis.

UN aid chief Martin Griffiths said on Thursday he was hopeful that the first shipment of grain from a Ukrainian Black Sea port could take place as early as Friday, but “crucial” details for the safe passage of vessels were still being worked out.

The Lloyd’s of London facility will provide up to $50 million of cover in marine cargo and war insurance, Lloyd’s, Ascot and Marsh said in a statement. The cover would “add essential protections to the deal brokered by the UN last week and represents the latest support from Lloyd’s and the insurance industry to help the international community respond to the conflict,” said Patrick Tiernan, chief of markets at Lloyd’s.

Insurers have previously said they were only willing to cover grain moving out of Ukrainian Black Sea ports if there are arrangements for international navy escorts and a clear strategy to deal with sea mines.

A Russian missile attack on Odesa only a day after the deal was signed has added to their concerns. “This bespoke, mission-focused facility allows the insurance market to play its part in enabling the vital transportation of grain and food products out of Ukraine to the wider world,” said Chris McGill, head of cargo at Ascot.

The cost of such insurance will vary according to cargo, shipowner and port but is likely to be steep, insurance sources say. Premiums to go into the broader Black Sea area have risen sharply, to as much as 5% of the value of the ship from 0.025% before the invasion. — Reuters

‘Look, no tie’: Spanish PM urges casual wear to stay cool, save energy

SPAIN’s Prime Minister Pedro Sanchez attends a news conference, sans tie, at the Moncloa Palace in Madrid, Spain, July 29. — MONCLOA PALACE/FERNANDO CALVO/POOL VIA REUTERS

MADRID —  Spanish Prime Minister (PM) Pedro Sanchez asked his ministers, public officials and private sector employees on Friday to stop wearing ties and stay cool as heatwaves sweep parts of Europe, stoking demand for energy-guzzling air-conditioning.

“I’d like you all to note that I am not wearing a tie,” Mr. Sanchez told a news conference. “This means we can all save from an energy point of view.”

High summer temperatures are straining Europe’s power systems and raising concern about the prospects for a regional drive to save more gas in case the war in Ukraine prompts further reductions in supplies from Russia.

Striking a more serious note, Mr. Sanchez said his government would introduce emergency measures next week to improve efficiency and energy saving.

For now, he said: “I have asked ministers, all public officials, and I would like to ask the private sector too, if they haven’t already done so, not to wear a tie when it isn’t necessary because that way we will be confronting the energy saving that is so important in our country.” — Reuters

CTA declines to review Marubeni unit’s tax dues

CTA.JUDICIARY.GOV.PH

THE Court of Tax Appeals (CTA) has affirmed its division’s ruling denying Maxima Machineries, Inc.’s appeal to review and set aside its tax liabilities worth P32.14 million for the fourth quarter of the 2016 fiscal year.

In a 43-page decision on July 25 and made public on July 28, the CTA full court said the company’s appeal lacked merit since it failed to prove that it was entitled to an input value-added tax refund traced to zero-rated sales.

It added that it found no compelling reason to overturn its division’s ruling.

The company is a subsidiary of Japanese business conglomerate Marubeni Corp.

“As to Marubeni Corporation, while petitioner was able to submit proof of its foreign incorporation, it failed to present Marubeni Corporation’s Securities and Exchange Commission (SEC) Certificate of Non-Registration,” according to the ruling penned by CTA Associate Justice Lanee S. Cui-David.

“We have determined that petitioner (Maxima Machineries) has no excess input VAT (value-added tax), which will entitle it to a refund.”

The court added that the conglomerate is doing business in the Philippines since it maintains a branch office through Maxima Machineries.

Under the country’s revenue code, companies must be supported by an SEC certificate of non-registration of corporation and proof of incorporation/registration in a foreign country.

The revenue code provides that a sale may qualify for a 0% VAT rate if the recipient of services is a foreign corporation doing business outside the Philippines, the payment for services was made in acceptable foreign currency based on the Philippine central bank rules, and if the services fall under services other than “processing, manufacturing or repacking goods.”

“Accordingly, a foreign corporation with a branch office is deemed to be doing business in the Philippines,” said the tax court. “It cannot be classified as a non-resident foreign corporation for purposes of taxation.”

It added that a company applying for a tax refund or tax credit certificate must not only prove its entitlement to the claim but also comply with all documentary requirements provided by the country’s tax laws.

The tax court noted that a company must prove every minute aspect of its case for entitlement to a refund.

“The burden is on the taxpayer to show that he has strictly complied with the conditions for the grant of the tax refund or credit,” said the tribunal. — John Victor D. Ordoñez

Analysts’ July 2022 inflation rate estimates

INFLATION likely accelerated in July due to higher food prices and transport fares, but a cut in electricity rates and rollback in pump prices may have tempered the price pressures, according to analysts. Read the full story.

Analysts’ July 2022 inflation rate estimates

Yields mixed on demand for long tenors, Fed hike

YIELDS on government securities (GS) were mixed last week on strong demand for longer tenors and US Federal Reserve’s continued policy tightening.

GS yields, which move opposite to prices, at the secondary market fell by 10.12 basis points (bps) on average week on week, based on the PHP Bloomberg Valuation Service (BVAL) Reference Rates as of July 29 published on the Philippine Dealing System’s website.

The front end of the curve rose as the rates of the 91-, 182-, and 364-day Treasury bills (T-bills) went up by 13.19 bps (to 2.2683%), 14.92 bps (2.8857%), and 14.05 bps (3.2775%), respectively.

Meanwhile, yields at the belly of the curve dropped. The rates of the two-, three-, four-, five-, and seven-year bonds declined by 0.04 bp (to 4.8256%), 10.42 bps (5.1993%), 20.56 bps (5.4902%), 29.94 bps (5.7181%), and 51.49 bps (6.0617%), respectively.

At the long end of the curve, yields ended mixed. Yields on the 10- and 25-year papers dropped by 51.49 bps (6.293%) and 1.44 bps (6.8696%), respectively, while the 20-year T-bond’s rate edged up by 0.49 bp to 6.8983%.

Total GS volume traded last Friday almost doubled to P20.697 billion from the P10.693 billion seen on July 22.

“The local GS curve continued its flattening trend, which means yields of short-term securities rose compared to the significant drop of yields on the belly to long-end securities,” a bond trader said in a Viber message last Friday.

“Dealers and investors alike are seen extending their duration for yield pickup as evidenced by very strong demand during the 14-year auction last Tuesday,” the bond trader added.

The Bureau of the Treasury made a full P35-billion award of its offer of reissued benchmark 25-year T-bonds last week as tenders reached P93.998 billion. The bonds, which have a remaining life of 13 years and four months, were awarded at yields ranging from 6.75% to 6.949%, causing the average rate to reach 6.894%, lower than the 8.125% fetched the papers were first offered on Dec. 14, 2010.

“The strong market demand for long-term government securities and corporate bonds recently also partly led to the sharp decline in the long-term PHP BVAL yields, after local bond yields reached pre-pandemic highs (highest in 2-3 years) and among economic cycle highs amid possible US economic recession,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in an e-mail on Friday.

Mr. Ricafort expects yields on short-dated papers to continue to go up and those on longer tenors to ease further this week after the US Federal Reserve hiked rates anew on Wednesday.

“Treasury bond auction yields and long-end PHP BVAL yields could continue to ease after reaching pre-pandemic highs last month (highest in 2-3 years) amid risk of US recession that could slow down any future Fed rate hikes,” he said.

The Fed last week raised its key rates by 75 bps for the second straight meeting, as expected, to temper rising inflation. To date, the Fed has raised its policy rates by a total of 225 bps.

The bond trader expects yields to move sideways this week, driven by the 3.5-year T-bonds to be auctioned off on Tuesday and the July inflation print to be released on Aug. 5.

“BSP (Bangko Sentral ng Pilipinas) Governor Felipe M. Medalla earlier pronounced that monetary policy tightening will persist in the coming months mainly to mitigate risks to inflation,” the trader said.

“Consequently, market players could be more cautious for the week which may cause yields to consolidate given the recent bond market rally,” the bond trader said.

Mr. Medalla last week signaled an interest rate hike of 25 or 50 bps at their Aug. 18 meeting, although he ruled out another off-cycle increase.

The Monetary Board has raised benchmark interest rates by a total of 125 bps so far this year as inflation continues to remain elevated.

A BusinessWorld poll of 14 economists last week yielded a median estimate of 6.2% for July headline inflation, within the central bank’s forecast of 5.6% to 6.4% for the month.

If realized, this would be faster than the 6.1% reading in June as well as the 3.7% posted the same month last year, and would be the quickest in nearly four years (45 months) or since 6.9% in October 2018.

It would also mark the fourth straight month that inflation went above the central bank’s 2-4% target this year. — Ana Olivia A. Tirona

1...6,0166,0176,018...14,169Page 6,017 of 14,169
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin X Youtube