Latest news with #EliRemolona
Bloomberg
12 hours ago
- Business
- Bloomberg
Philippines to Step In Should Peso Weakness Threaten Prices
Philippine central bank Governor Eli Remolona said authorities are prepared to intervene more strongly in the foreign-exchange market should the decline in the peso threaten inflation. 'The effect of the exchange rate on inflation depends on how big the depreciation is, and we have estimates of that threshold,' Remolona said in an interview with CNBC on Friday. 'We would come in somewhat more forcefully than before' once such threshold is breached, he said.
The Star
a day ago
- Business
- The Star
Philippines central bank cuts policy rate by 25 bps, as expected
MANILA: The Philippine central bank cut its policy rate by 25 basis points to 5.25%, its governor announced on Thursday, taking the rate to its lowest level in two-and-a-half years. A Reuters poll showed 22 out of 25 economists had forecast the Bangko Sentral ng Pilipinas to lower its target reverse repurchase rate. The rest expected rates to stay unchanged at 5.50%. BSP Governor Eli Remolona said in a briefing that while the outlook for inflation had moderated and there was a need for accommodative policy, there were risks from rising geopolitical tensions and external policy uncertainty that had to be monitored. The BSP cut rates at three consecutive meetings from August last year, but then surprised markets by pausing at its February review. It delivered another 25 basis point rate cut in April. Last month, Remolona had said the BSP had room to deliver two more 25 basis point rate cuts this year but they may not be at consecutive meetings. - Reuters
New Straits Times
a day ago
- Business
- New Straits Times
Risk aversion grips Asian stocks, currencies; Philippines cuts rates as expected
SINGAPORE/HONG KONG: Asian stock markets and currencies fell on Thursday on broader risk-off sentiment as cautious investors weighed the possibility of US involvement in the Israel-Iran conflict. Meanwhile, the Philippine central bank cut its policy rate by 25 basis points as expected. Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona stated that while an accommodative policy was needed, there were risks associated with geopolitical tensions and external policy uncertainty that had to be monitored. The peso was largely unchanged after the decision, still trading down 0.6 per cent near a two-month low. Iran and Israel traded further air attacks as US President Donald Trump kept markets guessing on whether Washington would join Israel's strikes on Iranian nuclear facilities. The Israeli shekel weakened 0.3 per cent. The Indonesian rupiah fell 0.6 per cent to a near three-month low and the Indian rupee dipped 0.3 per cent. The South Korean won fell as much as 1 per cent and the Vietnamese dong touched a record low. "Geopolitical developments remain fluid, and caution is warranted as we head into the weekend," said Christopher Wong, currency strategist at OCBC. With oil prices at risk of going higher as a result, net-oil importing currencies such as the peso, the rupee, the won and the Thai baht may be affected more than other peers, he added. The Taiwan dollar weakened 0.3 per cent ahead of its central bank's rate decision, in which it is likely to maintain its policy rate. The Thai baht fell as much as 0.9 per cent to a one-month low as political uncertainty weighed on already fragile sentiment. Thai Prime Minister Paetongtarn Shinawatra's government hangs by a thread, with coalition partners reconsidering their support after a major player's exit threatened to bring down the administration. In the near term, political uncertainty may weaken the baht further, as foreign investors lose confidence and sell Thai assets especially if the US dollar strengthens and gold prices continue to fall, said Poon Panichpibool, markets strategist at Krung Thai Bank. Bangkok equities dropped as much as 2.4 per cent to their lowest since April 9. Other stock markets also tumbled, with equities in Taiwan slipping 1.6 per cent and those in Singapore down 0.6 per cent. Indonesia stocks dropped 2.4 per cent to their lowest since May 14, a day after the country's central bank paused its easing cycle just hours before the US Federal Reserve held rates steady as expected.
Business Times
a day ago
- Business
- Business Times
Philippines cuts key rate again as inflation stays below target
[MANILA] The Philippine central bank lowered its key interest rate by a quarter point for the second time this year, as widely expected, after inflation remained below target. The Bangko Sentral ng Pilipinas (BSP) reduced its overnight target reverse repurchase rate to 5.25 per cent on Thursday (Jun 19), matching the forecast by 29 of 30 economists in a Bloomberg survey. One saw a hold. The BSP stayed on an easing path after inflation slowed further in May, staying below the central bank's 2 per cent-4 per cent goal for a third month. The move is in line with governor Eli Remolona's signal last month for at least two more rate cuts this year, continuing a cycle of reductions that started in August. Oil price gains due to the Israel-Iran conflict, however, could stoke inflation in the nation heavily reliant on fuel imports. The Philippine peso has also weakened amid global risk aversion. Remolona said on Wednesday that it's futile to intervene in the currency market to support the peso that's fallen nearly 3 per cent against the dollar this month – the biggest loser in Asia. The move comes a day after Bank Indonesia paused to stabilise its currency in the face of the trade war and Middle East tensions. The Federal Reserve similarly held its benchmark rate, with officials saying uncertainty over the economic outlook was still high. The rate cut will nonetheless help support the South-east Asian economy, which expanded slower than expected last quarter, partly due to weaker investment growth as US President Donald Trump's tariff threats hurt global sentiment. BLOOMBERG
Bloomberg
2 days ago
- Business
- Bloomberg
Philippine Central Bank Chief Calls Peso Intervention ‘Futile'
By and Prima Wirayani Save Philippine central bank Governor Eli Remolona said it's futile to intervene in the currency market to support the peso, which has fallen about 2% this month. 'It's futile to intervene when it's a strong dollar story driven by safe haven flows,' Remolona said in a mobile-phone message on Wednesday.
