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A broader look at today’s business Saturday, February 1, 2025 Vol. 20 No. 112
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BSP RATE CUT ‘ON THE TABLE’ AT FEB 13 MEET n
P25.00 nationwide | 16 pages | 7 DAYS A WEEK
By Reine Juvierre S. Alberto
LANDBANK OPENS FIRST NCR ‘PHYGITAL’ BRANCH
T
HE Bangko Sentral ng Pilipinas (BSP) is considering a rate cut in its first meeting for the year as the economy continues to underperform.
BSP Governor and Chairman of the Monetary Board Eli M. Remolona Jr. told reporters on Friday that the performance of the Philippine economy remains a major consideration in the Monetary Board’s decision on monetary policy. “It’s on the table,” Remolona said when asked if the BSP would cut its key policy rates at the Monetary Board meeting on February 13. The economy only posted a growth of 5.2 percent in the last quarter of 2024, leaving full-year growth to an average of 5.6 percent, the second consecutive year that the country failed to meet its minimum GDP growth target. (See: https://businessmirror.com. ph/2025/01/30/q4-gdp-growth-at5-2-as-typhoon-battered-farm-sector-shrinks/).
ON THE ‘GOLDILOCKS’ ECONOMY:
“Are we at capacity? Then that’s the ideal thing. Or are we above capacity? That tends to be inflationary. If we’re below capacity, then that tends to be disinflationary.” — BSP Governor Eli Remolona Jr.
TOP government and banking officials gather for the inauguration of the LandBank Makati Business Center – Ayala Avenue Phygital Branch on Thursday, January 30, 2025. Present at the event were Philippine Deposit Insurance Corporation President and CEO Robert B. Tan, LandBank Branch Banking Sector Head and Executive Vice President Liduvino S. Geron, Governance Commission for GOCCs Commissioner Atty. Brian Keith F. Hosaka, LandBank President and CEO Lynette V. Ortiz, Deputy Treasurer of the Philippines Ma. Nanette C. Diaz, Governance Commission for GOCCs Chair Atty. Marius P. Corpus, Governance Commission for GOCCs Commissioner Atty. Geraldine Marie Berberabe-Martinez, and Office of the Special Assistant to the President for Investment and Economic Affairs Undersecretary Jose Edwiniel C. Guilas. NONOY LACZA
CHRIS BRIGNELL | DREAMSTIME.COM
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“We’re growing at a little bit below capacity, and whether that number widens that gap between our capacity and how much we’re really growing” is something that must be reckoned with, Remolona said. The governor is referring to the output gap—the difference between actual and potential eco-
nomic output—widening, which could warrant the BSP’s move for more policy easing. “If the output gap is widening, if it becomes more negative, then it would call for more easing,” Remolona said. Despite the United States Federal Reserve pausing its interest rate cuts in its first meeting this
year, Remolona said the Philippines does not automatically trail the steps of the Fed. “We don’t copy them. We don’t follow them,” Remolona said, although the Fed’s moves still affect what the BSP will do, what happens to the US economy and their inflation rates. Continued on A2
Month-ahead inflation forecast for Jan: 2.5-3.3% JANUARY 2025 INFLATION FORECAST: 2.5% - 3.3% UPWARD PRESSURES: n Rising petroleum prices n Higher food costs n Annual water rate hikes n Increased sin taxes DOWNWARD PRESSURES: n Stable rice prices n Lower electricity rates SKYPIXEL | DREAMSTIME.COM
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ILIPINOS entered the new year with high commodity prices as the Bangko Sentral ng Pilipinas (BSP) expects inflation to remain elevated in January. In its month-ahead inflation forecast, the BSP projects inflation to average between 2.5 and 3.3 percent in January. This comes after the Philippines posted an inflation rate of 2.9 percent in December 2024 and 2.8 percent in January 2024. Meanwhile, full-year inflation was at 3.2 percent in 2024. The rise in petroleum prices and higher costs of major food items due to lingering effects of recent weather disturbances caused the upward price pressures, the BSP said. The annual adjustments in water rates and sin taxes also increased commodity prices during the month, it added. Nonetheless, the BSP said prices of rice and electricity rates are expected to offset the upward
price pressures. Moreover, the BSP said it will continue to vigilantly watch price pressures in the country to aid in their decision related to monetary policy.
“Going forward, the Monetary Board will continue to take a measured approach in ensuring price stability conducive to balanced and sustainable growth of the economy and employment,” the BSP said. BSP Governor and Chairman
of the Monetary Board Eli M. Remolona Jr. said the Central Bank will maintain an easing posture this year, but a 100-basis-point reduction in key policy rates “may be a bit much.” (See: https://businessmirror.com.ph/2024/12/20/bsp-unlikely-to-cut-key-rates-by-100-bps/). Finance Secretary Ralph G. Recto, who also sits as a member of the Monetary Board, said a 50to 75-bps reduction in key policy rates could be delivered through a 25-bps cut per semester this year. Last year, the Monetary Board reduced policy rates thrice by 75 bps, bringing down the prevailing interest rates to 5.75 percent. Meanwhile, the United States Federal Reserve kept its key policy rates unchanged at the 4.25 to 4.50 percent range after cutting it three times in a row in 2024. The Monetary Board will hold its first policy rate-setting meeting on February 13, 2025.
ANDBANK opened its first “phygital” branch in Metro Manila as part of the bank’s nationwide rollout of modernized branches to provide Filipinos more accessible and innovative financial services. The LandBank Makati Business Center – Ayala Avenue Phygital Branch, located in Robinsons Summit Center on Ayala Avenue in Makati City, combines physical and digital services for a more streamlined, seamless, and delightful customer experience. LandBank President and CEO Lynette V. Ortiz and Deputy Treasurer of the Philippines Ma. Nanette C. Diaz led the inauguration rites for the LandBank Makati Business Center – Ayala Avenue Phygital Branch. Governance Commission for GOCCs (GCG) Chair Atty. Marius P. Corpus and Commissioners Atty. Brian Keith F. Hosaka and Atty. Geraldine Marie Berberabe-Martinez, Philippine Deposit Insurance Corporation (PDIC) President and CEO Robert B. Tan, and Philippine National Oil Company (PNOC) President and CEO Oliver B. Butalid also graced the event. “Our phygital branches represent a bold and timely step forward in bridging traditional banking with digital innovation. This reflects LandBank’s commitment to empower Filipinos by delivering accessible, customer-focused, and inclusive financial services,” said Ortiz. This latest upgraded branch is LandBank’s eighth phygital branch, as the bank plans to inaugurate at least 30 more phygital branches nationwide by the end of the year.
Transforming branch experience
LANDBANK phygital branches feature a refreshed look with selfservice machines, new queuing and tellering systems, meeting pods, and interactive zones. Each branch has a dedicated phygital ambassador to assist and guide customers to the machines or areas Continued on A2
NOTICE OF FILING OF APPLICATION/S FOR ALIEN EMPLOYMENT PERMIT/S (AEP/S) Notice is hereby given that the following companies/Employers have filed with this Regional Office application/s for Alien Employment Permit/s: ESTABLISHMENT / ADDRESS No.
NAME OF FOREIGN NATIONAL , POSITION AND BRIEF DESCRIPTION
QUALIFICATION AND SALARY RANGE
BRIGHT LUME IT SOLUTIONS INC. Unit 202 Erisha Condominium, 1142 P Ocampo Street, Barangay 757, Santa Ana, City Of Manila
KE, XIAOXU IT Coordinator 1.
Brief Job Description: Institute protocols for the use of IT across departments and projects. Provide advice on the most suitable choices. Act as a link between end users and high-level support.
Basic Qualification: Bachelor’s degree with experience in Business Management, Product and Research Development, Computer/ Software Training, Marketing/Sales, or related field. Fluent in both written and verbal English and Mandarin languages. Salary Range: Php 30,000 - Php 59,999
See “dole ncr” on A13-A15
Reine Juvierre S. Alberto
PESO EXCHANGE RATES n US 58.3620 n JAPAN 0.3782 n UK 72.5031 n HK 7.4904 n CHINA 8.0633 n SINGAPORE 43.1352 n AUSTRALIA 36.2253 n EU 60.6440 n KOREA 0.0404 n SAUDI ARABIA 15.5591 Source: BSP (January 31, 2025)