Inflation still top priority for BSP T
NEWS | A2
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HE central bank signaled that inflation remains its top priority as the governor, who’s also the chairman of the Monetary Board, indicated that the economy can still absorb more rate hikes despite the weak growth momentum. In an interview with reporters on Monday, BSP Governor Eli M. Remolona Jr. expressed confidence that the economy will recover “in the second half of this year.” “So we expect to recover strongly in the second half of the year.” He pointed to the “flood control” scandal, which triggered a strictness in spending. However, he expects that “by the
second half, it should be alright.” He expressed hope that the growth rate of the economy would at least be 4 percent in the second half of the year. Asked if the economy could still absorb another rate hike, the BSP chief said: “Kayang kaya pa kasi maliit lang ‘yung 25 basis points eh [It can very well be accommodated because 25 basis points isn’t so big].” Even with a weak growth momentum, Remolona explained the importance of raising the nominal interest rate to attain a positive real interest rate, meaning, the nominal interest rate should be at least on the same level as the inflation rate.
“Nominal yun ha. Pag binawas mo yung inflation, ang baba nun. [Around] 6 percent ang inflation natin eh so 4.75 percent [nominal interest rate] minus 6 percent, e di negative pa yun,” the central bank chief explained. The Philippine economy grew by 2.8 percent in the first quarter of the year, according to the Philippine Statistics Authority (PSA). The latest print marked the weakest gross domestic product (GDP) growth since the 3.8 percent contraction recorded in the first quarter of 2021 at the height of the pandemic. See “Inflation,” A7
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Tuesday, July 7, 2026 Vol. 21 No. 266
P25.00 nationwide | 2 sections 20 pages | 7 DAYS A WEEK
THE HOUSE DIVIDED Inside the Senate chamber, history is set in motion. Outside, Filipinos take their respective sides. The Senate formally convened on Monday (July 6, 2026) as an impeachment court for the trial of Vice President Sara Duterte, with senator-judges taking their oaths and electing
Sen. Francis “Chiz” Escudero to preside over the proceedings. At the opening session, Minority Leader Sen. Alan Cayetano objected to changes in the impeachment rules, arguing that the existing rules already provide for the election of the presiding officer. The day’s proceedings unfolded amid another major political development: Sen. Rodante Marcoleta surrendered after the Sandiganbayan denied his motions to quash the plunder case against him and ordered his arrest. Marcoleta, who was expected to sit as a senator-judge in the impeachment trial, was absent from the Senate as a result. Beyond the Senate gates in Pasay City, supporters of Vice President Duterte waved Philippine flags in a show of solidarity, while separate groups called for accountability. The impeachment case stems from four articles approved by the House of Representatives, including allegations involving the misuse of confidential funds, bribery, unexplained wealth, and threats against top government officials. Vice President Duterte has denied the allegations. NONIE REYES, NONOY LACZA, ROY DOMINGO/SPPA Pool, GERARD CARREON/AP
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By Justine Xyrah Garcia
HE Philippine economy must grow by an average of at least 3.7 percent over the remaining three quarters of 2026 to meet the lower end of the government’s revised growth target, according to the Department of Economy, Planning, and Development (DepDev). DepDev Secretary Arsenio M. Balisacan said the economy remains on track for a stronger rebound in the second half of the year despite lingering external headwinds, as the government banks on faster infrastructure spending. “The next three quarters, especially in the second half, will have to be much better to achieve that target of 3.5 to 4.5 percent. We expect much improvement in the second
half,” Balisacan said in a press briefing on Monday. DepDev estimates show that the economy needs to grow by an average of 3.7 percent in the remaining three quarters to achieve the lower end of the revised 3.5- to 4.5-percent growth target. To hit the upper end of the range, growth would have to average around 5.07 percent over the same period. See “Growth,” A2
121 FIRMS ISSUED SHOW-CAUSE ORDERS ON OUTAGES SNUB DOE By Lenie Lectura
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@llectura
HE Department of Energy (DOE) has issued a total of 203 show-cause orders (SCOs) to power firms over plant outages. Of these, 121 have snubbed the agency. “As of today, we have issued 174 show cause orders to on-grid power generators and 29 show cause orders to off-grid generators. This is on a per-plant basis. So, a total of 203 show-cause orders,” said DOE legal officer Gabriel Corpuz during an online news conference. “Just to clarify, these showcause orders do not mean that the generation companies are guilty of forced outages, recurring capacity
deratings, or other violations. It simply means that they failed to submit the required annual selfassessment form,” he added. The deadline to reply to the SCOs issued by the DOE was extended up to April 24 this year. “Based on the submissions, if they comply, the DOE will still have to assess them and determine whether there are violations. That is when the DOE will determine whether the generation companies should be penalized,” added Corpuz. According to DOE Secretary Sharon Garin, out of the 174 SCOs sent to on-grid plants, 114 companies have taken no action. “They did not even respond or See “DOE,” A2
NFA auction of over 37K MT aging rice fails By Ada Pelonia
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@adapelonia
HE National Food Authority (NFA) failed to attract enough bidders for its auction of more than 37,000 metric tons (MT) of aging rice stocks last June 30. NFA Administrator Larry Lacson told the BusinessMirror that the lack of interest in the agency’s fourth round of tender likely stemmed from the “high” floor price. “Only one participated and they got disqualified. They said the floor price was high, so we’ll reassess it and then hold the auction again,” Lacson told this newspaper. “By rule, there is a certain percentage that allows the lowering of [floor prices] if needed,” he added,
not disclosing the potential decrease in prices. The previous prices ranged from P22 to P28 per kilo, depending on how long the rice has been stored. The approved volume in the latest auction covers milled rice stocks aged 6 to 18 months. In May, Lacson said the NFA would slightly increase the floor price following the uptick in retail rice prices. Given the failed auction, the NFA chief said the grains agency is targeting to hold another bidding of aging rice stocks this month, with the same volume of 741,570 50-kilo bags or 37,078 MT.
Buying price
EARLIER, the NFA announced that See “Rice,” A2
PESO EXCHANGE RATES n US 61.4210 n JAPAN 0.3808 n UK 82.0216 n HK 7.8319 n CHINA 9.0618 n SINGAPORE 47.5689 n AUSTRALIA 42.6262 n EU 70.2779 n KOREA 0.0402 n SAUDI ARABIA 16.3645 Source: BSP (July 6, 2026)