MB seen likely to keep higher rates on June 27 By Cai U. Ordinario @caiordinario
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THE WORLD | A13
IN INITIAL WIN FOR PRESIDENT MILEI, SENATORS APPROVE HIS KEY BILLS AFTER VIOLENT PROTESTS
ROTARY CLUB OF MANILA JOURNALISM AWARDS
2006 National Newspaper of the Year 2011 National Newspaper of the Year 2013 Business Newspaper of the Year 2017 Business Newspaper of the Year 2019 Business Newspaper of the Year 2021 Pro Patria Award PHILIPPINE STATISTICS AUTHORITY 2018 Data Champion
HE higher interest rates in the Philippines will likely be maintained in the next meeting of the Monetary Board following the decision of the Federal Open Market Committee (FOMC) to maintain key policy rates in the United States. The FOMC said in a statement the decision was made on the basis that it would like “to achieve maximum employment and inflation at the rate of 2 percent over the longer run.” The Monetary Board, the highest policymaking body of the Bangko Sentral ng Pilipinas (BSP) which sets key policy rates in the country, will meet on June 27. “We will keep rates unchanged. De-
spite inflation expectations trending lower,” Jonathan L. Ravelas, senior adviser at professional services firm Reyes Tacandong & Co., told BusinessMirror on Thursday. “Our inflation is moving from 2.8 percent to 3.9 percent from January to June.” Ravelas noted that with the recent decision of the US Federal Reserve, he is inclined to keep his view that the BSP will not introduce any rate cuts this year. However, Ravelas expects the BSP to start cutting rates next year. He expects a total rate cut of 75 basis points (bps) that will be delivered in increments of 25 bps starting in the second quarter of 2025. Other analysts like Unionbank Chief Economist Ruben Carlo Asuncion do not share this view. He said
they still expect the BSP to cut rates this year, possibly by 25 bps or even two 25-bps rate cuts each by yearend. Nonetheless, the recent FOMC decision may indicate that the country's Monetary Board would not be in a hurry to cut rates any time soon. Asuncion noted that rate cuts have a higher probability of being delivered by 2025. "We have heard from the BSP the potential of a rate cut ahead of the US Fed previously. This definitely does not help the likelihood of a BSP rate cut soon. We are still expecting the BSP to keep rates on hold in their upcoming meeting," Asuncion told this newspaper. For his part, Bank of the Philippine Islands (BPI) Chief Economist Emilio S. Neri Jr. told BusinesssMirror FOMC’s decision still had sway in
the decision that the Monetary Board will make in two weeks. Neri also said despite the increase in pressure on the Philippine peso, the BSP can still cut ahead of the US Federal Reserve. The economist expects the Monetary Board to cut rates by 25 bps either in October or August. This rate cut, he said, could be followed by a 1-percent cut in the Reserve Requirement Ratio (RRR) before the year ends. “Path of Fed policy will definitely have an influence on BSP’s forthcoming decisions,” Neri sad. “How is this possible, you may ask? Well, as long as Philippine headline inflation prints continue to surprise on the downside, BSP can begin cutting already.”
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Friday, June 14, 2024 Vol. 19 No. 241
See “MB,” A2
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REAL PROPERTY ENACTED P
By Jovee Marie N. dela Cruz @joveemarie & Reine Juvierre Alberto @reine_alberto
RESIDENT Ferdinand R. Marcos Jr. signed the proposed Real Property Valuation and Assessment Reform Act (RPVARA) into law on Thursday to streamline and enhance the country’s tax collection system. Republic Act 12001 will establish a single system of valuation for real properties that are aligned with international standards to be used for local and national taxation, among other purposes. The RPVARA is among the pri-
ority legislation and is included in the Common Legislative Agenda of the Marcos administration, aligned with the 8-Point Socioeconomic Agenda. See “Single,” A2
MANILA AMONG WORLD’S ‘HOTTEST’ CASINO SITES By Ma. Stella F. Arnaldo
@akosistellaBM Special to the BusinessMirror
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ANILA has been put on the radar of international gamers after it was recommended by a United Kingdom-based sportsbetting and tipster community among “the hottest casino destinations” this year. In its Global Casino Index of 2024, OBLG.com research ranked Manila in sixth place with a score of 6.68 index points out of 10. Manila, which has 48.21 average table games per casino, showed up in 94,200 annual casino searches from May 2023 to April 2024. To determine a destination’s rank on the index, OBLG also took into consideration the number of casinos per 1,000 people; the average number of restaurants per casino; and the average daily rate of local Airbnb rentals. Topping the Global Casino Index published on May 28 is Macau, with a score of 9.32 points; followed by Philadephia (7.24); Las Vegas (7.2); Singapore (6.84); and Calgary (6.72). Others on the list of top casino
destinations in the world are: New Orleans, with an index score of 6.6 points; followed by Vienna (6.28); Brisbane (6.16); Melbourne (6.08). See “Manila,” A2
ARMORED AND AGILE Propmech Corp. showcased its advanced maritime defense technology during a shipyard media tour held on Thursday, June 13, 2024, at Safehull Marine Technologies Inc. in the Global Industrial Park of Subic Bay Freeport in Zambales. The tour featured a ride on refurbished multipurpose attack craft (MPAC) units intended for the Philippine Navy. Propmech, known for its strong partnership in maritime defense modernization, demonstrated its commitment through these upgraded MPACs, which were previously observed during repairs and enhancements. Safehull, contracted by the Philippine Navy, has successfully refurbished numerous MPAC units extensively used in various missions. The tour emphasized Safehull’s manufacturing expertise in producing naval, police, marine and coast guard vessels, as well as civilian boats. NONOY LACZA
Peza eyes new ecozones in Bicol, in sync with LEC
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Pagcor total gross gaming revenues reached P81.7 billion in the first quarter of 2024. Courtesy OF Pagcor
HE Philippine Economic Zone Authority (Peza) is studying the possibility of developing new ecozones in the Bicol Region to complement the Luzon Economic Corridor (LEC). Peza Director General Tereso O. Panga said there are already a number of infrastructure projects to turn this into reality and make the region more accessible to international trade. These projects are the Department of Public Works and Highways (DPWH) Toll Road 4 and Toll Road 5, as well as the Asian Development Bank (ADB)-funded PNR South-Long Haul Railway project. “The Region already has existing airports at strategic locations that com-
pliment these upcoming infrastructure trade highways. The only major component lacking are international seaports on the Eastern seaboard of the Philippines,” Peza said in a statement. Panga said the construction of seaports such as Pantao, in the next four years, will shorten the transport of goods from the country’s trade partners such as Taiwan, Korea, the US, Japan, the Americas, Australia, New Zealand and other destinations in the Pacific. “It will create new growth areas that will uplift the lives of millions in the region and have an economic impact on South Eastern Visayas as well,” Panga said. See “Peza,” A2
PESO exchange rates n US 58.6970 n japan 0.3749 n UK 75.1498 n HK 7.5165 n CHINA 8.1096 n singapore 43.5923 n australia 39.1039 n EU 63.4808 n KOREA 0.0429 n SAUDI arabia 15.6496 Source: BSP (June 13, 2024)