If realized, this would bring down the country’s benchmark interest rate to 5.25 percent this year and four percent next year.
Nomura chief economist Sonal Varma and Asian economist Si Ying Toh said the research firm’s modified Taylor rule (MTR) showed that the Philippines has the potential for larger than-expected rate cuts in the next two years compared to its baseline forecasts.
“The MTR suggests policy easing should begin in the third quarter of 2024, with 250 basis points of cumulative cuts to a terminal rate of four percent by 2025,” Varma and Toh said.
This story is from the July 15, 2024 edition of The Philippine Star.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the July 15, 2024 edition of The Philippine Star.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Energy security, consumer choice and the ERC
Energy and power security means ample supply of electricity with no blackout, there is consistent expansion of power supply to meet rising demand yearly.
Bloomberry gets ball rolling on 3rd Solaire casino resort
Bloomberry Resorts Corp. of tycoon Enrique Razon Jr. has commenced preparations for its third Solaire casino resort in the country to be opened in the next five to 10 years.
First self-driving bus service launched in Clark
Japan-based Zenmov Inc. in partnership with MC Metro Transport Operation Inc., has rolled out the country’s first smart autonomous bus service in New Clark City in Capas, Tarlac.
BSP thumbs down reduction in thrift banks' liquidity ratio
Reducing the minimum liquidity ratio (MLR) of thrift banks to 16 percent from the current 20 percent is not needed at this time as the industry remains capable of complying with the requirement, the Bangko Sentral ng Pilipinas (BSP) said.
ACEN gets green lane status for solar project
The Board of Investments (BOI) has endorsed for green lane processing ACEN Corp.’s SanMar solar project in Zambales.
Phl seeks re-inclusion in JP Morgan bond index
The Philippines will likely benefit from a renewed wave of investor interest if the country is re-included in JP Morgan’s widely tracked emerging markets bond index (EMBI), according to Metropolitan Bank & Trust Co. (Metrobank).
Rural ISPs push lifting of telco entry barriers
Internet service providers (ISPs) in farflung areas have fired back at the dominant players in the connectivity industry by rallying behind a proposed law that would ease barriers for entry.
Growth on target this year, says BSP
The Philippine economy may grow within the six to seven percent target for this year, but it could fall below the targets set for 2025 and 2026 due to the negative impact of previous rate hikes on demand, according to the Bangko Sentral ng Pilipinas BSP).
Archers rip apart Falcons
Reigning champion La Salle hardly broke a sweat in trashing Adamson, 82-52, to stay unblemished in the UAAP Season 87 yesterday at the Smart Araneta Coliseum.
Philippines gambles on board assignment
Call it a Philippine gambit. Deviating from their usual roster for a better chance at winning, the Filipinas will gamble on fielding their top two players Janellle Mae Frayna and Jan Jodilyn Fronda on second and third boards instead in the 45th FIDE Chess Olympiad that unfurled last night at the BOK Sports Hall here.
