MONEY MASTER

The Bangko Sentral ng Pilipinas (BSP) is expected to deliver another interest-rate cut on Thursday, as policymakers seek to cushion the economy from US tariff pressures while inflation remains subdued. Market Expectations Consensus:  All  26 economists surveyed by Bloomberg  forecast a 25-basis-point cut, lowering the policy rate to  5%  — the lowest in nearly three years. Governor’s signal:  Eli Remolona flagged earlier this month that easing became “more likely” after inflation hit a near six-year low, with scope for  further cuts in 4Q25 and into 2026 . Regional trend:  The Philippines joins peers like  Indonesia and New Zealand , both of which have tilted dovish in response to trade-war fallout. Inflation and Currency Outlook Inflation:  Below BSP’s  2–4% target  for five straight months; expected to stay within a “comfortable range.” Peso strength:  Up around  2% in August , the best performer in emerging Asia, e...

Philippine inflation eased to  0.9% YoY in July , the  lowest since October 2019 , driven by cheaper utilities and food — setting the stage for potential  interest rate cuts  by year-end. Key Figures CPI (July):  0.9% YoY (vs June: 1.4%, Reuters forecast: 1.1%) 7-month avg inflation:  1.7% (Below BSP’s 2.0%–4.0% target) Core inflation:  ▲ to 2.3% (from 2.2% in June) Rice prices:  ▼15.9% YoY (vs ▼14.3% in June)   Monetary Policy Outlook BSP rate:  5.25% (2.5-year low) Governor Remolona:  Signals  2 more rate cuts  likely in 2025 Next BSP rate review:  Aug 28 Commentary:  "More accommodative stance remains warranted"   Risks to Monitor Rising  geopolitical tensions External policy  uncertainties Impact of  previous rate hikes  still unfolding   Key Upcoming Data Q2 GDP (Aug 7):  Expected to beat Q1’s 5.4% Full-year growth forecast:  Revised down to 5.5–6.5% (from 6–8%) Takeaw...

The Bangko Sentral ng Pilipinas (BSP), the Philippine central bank, has cut its benchmark interest rate by 25 basis points to 6% , marking the second rate reduction this year. This decision follows the slowdown in inflation, giving the central bank room for further easing. The move aligns with expectations, as 25 out of 26 economists surveyed by Bloomberg had anticipated the rate cut. The central bank initiated its easing cycle in August, with BSP Governor Eli Remolona expressing a preference for gradual quarter-point cuts rather than larger reductions unless the country's economic growth significantly weakens. In September , Philippine inflation slowed to a four-year low of 1.9% , bringing the nine-month average to 3.4% , which falls within the BSP’s target range. The economy grew by 6.3% from April to June, positioning the Philippines as one of the fastest-growing economies in Asia. This rate cut aims to support sustained economic growth while maintaining stable inflation lev...

Three of Southeast Asia’s largest economies — Indonesia , the Philippines , and Thailand — are set to announce their monetary policy decisions today, as they contend with politics, inflation, currency volatility , and geopolitical risks . Each central bank faces unique pressures, but the general consensus is that rate hikes are off the table, with policymakers expected to either hold or cut rates . Indonesia Bank Indonesia is widely expected to hold its benchmark rate at 6% , according to a Bloomberg survey of 41 economists. In September, Indonesia surprised markets with an early rate cut as part of an easing cycle, but recent rupiah weakness — down over 2% this month — may prompt a more cautious approach. With low inflation and subdued consumption, the case for further rate cuts remains, though foreign exchange reserves could provide support through market intervention to stabilize the rupiah. Philippines The Bangko Sentral ng Pilipinas (BSP) is poised to cut its target reverse...

Philippine President Ferdinand Marcos Jr. has signed a law imposing a 12% value-added tax (VAT) on non-resident digital service providers, including major streaming platforms like Netflix , HBO , and Disney . This new law is among the first revenue-generating measures prioritized by the Marcos administration. It encompasses a wide range of digital services, including online search engines, media, advertising platforms, as well as digital marketplaces and goods, and cloud services. “If you are reaping the rewards of a fruitful digital economy here, it is only right that you contribute also to its growth,” Marcos stated during the signing event. He emphasized that the legislation aims to equalize the tax obligations of local businesses and international digital platforms. The Philippines, known for having one of the highest rates of mobile phone usage globally, is leveraging technology companies to boost revenue for infrastructure projects and other government initiatives amid fiscal c...