Philippine central bank signals August rate cut
Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona said it was 'quite likely' the bank would lower its key policy rate later this month, reiterating its easing bias to support growth amid global uncertainties and as inflation continues to slow.
'Things look good,' Remolona told a forum organised by the Economic Journalists Association of the Philippines, adding that inflation could fall to 2 per cent this year, the bottom of the BSP's target range.
Cooling prices have underpinned domestic demand, with the economy expanding 5.5 per cent in the second quarter, slightly faster than the 5.4 per cent growth in the previous quarter. Annual inflation eased to 0.9 per cent in July, the lowest since October 2019, bringing the year-to-date average to 1.7 per cent.
Remolona told Reuters on July 28 the BSP was on track to cut rates two more times in 2025. The key rate now stands at 5.25 per cent, a two-and-a-half-year low. After this month's meeting, the BSP will have two more policy meetings before year-end. REUTERS
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
3 hours ago
- Business Times
Delfi H1 net profit down 37.7% to US$12.2 million on softer performance in Indonesia
[SINGAPORE] Delfi posted a 37.7 per cent drop in net profit to US$12.2 million for its first half ended Jun 30, 2025, from US$19.6 million in the previous corresponding period. Excluding a non-recurring item resulting from the streamlining of its Philippine manufacturing operations, net profit would have been down 33.9 per cent to US$12.9 million, the chocolate confectionery company said in a bourse filing on Tuesday (Aug 12). Earnings per share stood at 2 US cents for the half-year period, down from 3.2 cents the previous year. In the half-year period, the company said it had spent more on promotions in Indonesia to drive the growth of its key brands and to address heightened competitive pressures. Meanwhile, its agency brands in Indonesia recorded lower sales, on the back of reduced promotion spending by some agencies, it said. Revenue for H1 fell 0.5 per cent to US$259.6 million, from US$260.8 million in the year before. This was primarily due to a softer performance in Indonesia, but largely offset by growth in its regional markets. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The top line also reflected the impact of a weaker Indonesian rupiah against the US dollar during the period, Delfi said. An interim dividend of 1 US cent (1.28 Singapore cents) a share was declared for the half year, down from 2.72 Singapore cents the year before. The dividend will be paid on Sep 12, after books closure on Aug 28. Delfi expects the operating environment to remain challenging in the rest of 2025 and into 2026, shaped by ongoing geopolitical tensions, macroeconomic headwinds and uncertainty in global trade. Persistently high cocoa bean prices also remain a major headwind for chocolate manufacturers globally, and are expected to continue hurting industry earnings, it said. Shares of Delfi closed S$0.01 or 1.2 per cent higher at S$0.85 on Tuesday, before the results were released.
Straits Times
10 hours ago
- Straits Times
Philippines voices concern over 'dangerous' Chinese actions after Scarborough Shoal collision
Sign up now: Get ST's newsletters delivered to your inbox MANILA - The Philippines expressed serious concern on Tuesday over what it described as "dangerous manoeuvres and unlawful interference" by Chinese vessels during a coast guard supply mission for Filipino fishermen in the Scarborough Shoal on Monday. "Their actions not only posed a grave danger to Philippine personnel and vessels, but also resulted in the unfortunate collision between the two Chinese vessels," the Philippine foreign ministry said in a statement. A Chinese navy ship collided with a smaller coast guard vessel while the latter was chasing one of the Philippine Coast Guard ships involved in the mission, according to the PCG, which captured the incident on video. China's defence ministry and its embassy in Manila did not immediately respond to requests for comment on the ministry's statement. On Monday, China's coast guard said it took necessary measures to expel Philippine vessels from waters around the Scarborough Shoal. The Philippine said it had offered medical aid and other support to the Chinese side, including an offer to tow the damaged China Coast Guard vessel out of the area. "Yesterday's incident demonstrates the importance of adhering to international maritime rules," the Philippine foreign ministry said. It reaffirmed its commitment to diplomacy and dialogue in resolving differences. Top stories Swipe. Select. Stay informed. Singapore Full service on NEL MRT line resumes after 3-hour disruption due to power fault Singapore Live: NEL services resume fully; Sengkang-Punggol LRT services still unavailable Singapore Plan to base Singapore's F-15 fighter jets in Guam cancelled Business Singapore raises 2025 economic growth forecast but warns of uncertainty from US tariffs Singapore Off-duty SCDF officer dies after accident in Punggol; 15-year-old pillion rider taken to hospital Business Goh Cheng Liang, Nippon Paint billionaire and richest Singaporean, dies aged 98 Business StarHub buys rest of MyRepublic's broadband business in $105m deal; comes after Simba buys M1 Singapore Circle Line to close early most Fridays and Saturdays, start late most weekends from Sept 5-Dec 28 Monday's confrontation marks the latest in a series of incidents amid a period of heightened tensions between Manila and Beijing over territorial disputes in the South China Sea. A 2016 ruling of an international arbitral tribunal voided Beijing's sweeping claims in the region, saying they had no basis under international law, a decision China rejects. Rear Admiral Roy Trinidad, Philippine navy spokesperson for the South China Sea, warned at a press briefing on Tuesday that similar incidents could happen again as long as China continued to conduct what he called "illegal, coercive, aggressive and deceptive" activities in the strategic waterway. REUTERS
Business Times
2 days ago
- Business Times
Philippine central bank signals August rate cut
[MANILA] The Philippine central bank signalled on Monday it may deliver the first of two remaining interest rate cuts this year at its Aug 28 policy meeting as inflation remained subdued. Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona said it was 'quite likely' the bank would lower its key policy rate later this month, reiterating its easing bias to support growth amid global uncertainties and as inflation continues to slow. 'Things look good,' Remolona told a forum organised by the Economic Journalists Association of the Philippines, adding that inflation could fall to 2 per cent this year, the bottom of the BSP's target range. Cooling prices have underpinned domestic demand, with the economy expanding 5.5 per cent in the second quarter, slightly faster than the 5.4 per cent growth in the previous quarter. Annual inflation eased to 0.9 per cent in July, the lowest since October 2019, bringing the year-to-date average to 1.7 per cent. Remolona told Reuters on July 28 the BSP was on track to cut rates two more times in 2025. The key rate now stands at 5.25 per cent, a two-and-a-half-year low. After this month's meeting, the BSP will have two more policy meetings before year-end. REUTERS
