BSP: January inflation could still breach 8%
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PAKISTAN’S WORST SUICIDE BOMBING IN YEARS KILLS 80 PEOPLE AT MOSQUE
HE increase in commodity prices could still exceed 8 percent in January on the back of higher electricity and water rates as well as expensive domestic petroleum prices, according to the Bangko Sentral ng Pilipinas (BSP). On Tuesday, BSP said inflation could settle within the range of 7.5 to 8.3 percent in January. This is still higher than the 8.1 percent posted in December 2022. “Upward price pressures for the month are expected to emanate
from higher electricity rates, approved water rate rebasing, higher domestic petroleum prices, uptick in the prices of key food items, and the annual increase in sin taxes,” BSP said. Meanwhile, BSP said the reduction in LPG prices as well as the peso appreciation could contribute to easing price pressures for the month. “The BSP will continue to adjust its monetary policy stance at the necessary pace to prevent
the further broadening of price pressures and monitor emerging price developments closely in accordance with the BSP’s price stability mandate,” it added.
Standard Chartered: Inflation to ease
STANDARD Chartered Bank said, however there is reason to believe that inflation will cool this year due to base effects. Standard Chartered said inflation is expected to average 4.8 percent this year and
3.1 percent in 2024. Nonetheless, the bank still expects the BSP to raise interest rates at least in the first and 50 basis points in the first quarter before cutting rates in the last quarter of the year. In the second quarter, Standard Chartered Bank said, the BSP is expected to maintain interest rates but implement a 200-basis-point cut in the reserve See “Inflation,” A2
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Wednesday, February 1, 2023 Vol. 18 No. 109
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’23 growth not seen to breach 6% By Cai U. Ordinario
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@caiordinario
EVENGE spending or pent-up demand is one of the strongest growth drivers of the Philippine economy this year, but this rise in consumption would not be enough for GDP growth to exceed 6 percent this year. Local think tank First Metro Investment Corp.-University of Asia and the Pacific (FMIC-UA&P) Capital Market Research expects GDP growth to average 6 percent this year, while Standard Chartered Bank said in a briefing on Tuesday that growth could settle at 5.3 percent in 2023 before increasing to 6 percent in 2024. “ The continued uptrend of revenge spending should spur increased economic activity and growth in 2023. On the other hand, the 2023 momentum should pave the way to offset inflation, through adjustments in interest rates, government subsidies, and the like,” FMIC-UA&P Capital
Market Research said in its latest Market Call report. The local think tank said other growth drivers include infrastructure spending, as the budget of the Department of Public Works and Highways (DPWH) rose by 12.1 percent in 2023. Projects like the Metro Manila subway and NorthSouth Commuter line are expected to “gain greater traction” this year, it added. FMIC-UA&P Capital Market Research said export earnings may not also sustain fast-paced growth and Overseas Filipino Worker (OFW) remittances would likely See “Growth,” A2
Marcos eyes ₧1-B starting fund for housing subsidy By Samuel P. Medenilla @sam_medenilla
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RESIDENT Ferdinand R. Marcos Jr. is eyeing an initial P1-billion budget to jumpstart the proposed housing subsidy program of the Department of Human Settlements and Urban Development (DHSUD). Marcos made the announcement while asking Congress to provide regular funding support for the housing goals of his administration. “Once we find the finding source for it, we will probably al-
locate an initial 1 billion [pesos] to provide subsidy to our new tenants,” Marcos said at the groundbreaking ceremony of the Pambansang Pabahay Para sa Pilipino Housing (4PH) Project in Quezon City last Tuesday. Last year, DHSUD Secretary Jose L. Acuzar said they have asked lawmakers for a P36-billion allocation for subsidies to be coursed through banks to help reduce the monthly payments of home buyers. The initiative is part of DHSUD’s comprehensive plan to
WORKERS wearing face masks sew fabrics at a textile factory in Huimin county in east China’s Shandong province. The outlook for the global economy is growing slightly brighter as China eases its zero-Covid policies and the world shows surprising resilience in the face of high inflation, elevated interest rates and Russia’s ongoing war against Ukraine. The International Monetary Fund now expects the world economy to grow 2.9 percent this year, better than the 2.7-percent expansion for 2023 that the IMF predicted in October. A big factor in the upgrade to global growth was China’s decision late last year to lift anti-virus controls that had kept millions of people at home. The IMF said China’s “recent reopening has paved the way for a faster-than-expected recovery.’’ CHINATOPIX VIA AP
CAUTIOUSLY OPTIMISTIC ABOUT ’23–MAP CHIEF By Andrea E. San Juan
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HE Management Association of the Philippines (MAP) said it is cautiously optimistic about 2023, adding that there needs to be a “high degree” of collaboration across industries and sectors. “The bigger challenge before us will be recovery—not just in the economic front but also in the structural rebuilding of the fundamentals needed to address the impact of the digital transformation and the changed business dynamics in our government on
our respective organizations,” Benedicta Du-Baladad, President of MAP for 2023, said on Tuesday. With this, the MAP president said this places an “enormous burden” on the business organization that will need “transformational” ideas and a “high degree of collaboration across industries and sectors.” She noted that MAP can be the “linchpin” to generate ideas and help make cooperation happen. Meanwhile, to back the business organization’s mission for See “MAP,” A2
See “Housing,” A2
PESO EXCHANGE RATES n US 54.5450 n JAPAN 0.4181 n UK 67.3794 n HK 6.9615 n CHINA 8.0781 n SINGAPORE 41.5075 n AUSTRALIA 38.5033 n EU 59.1704 n KOREA 0.0443 n SAUDI ARABIA 14.5306 Source:
BSP (31 January 2023)