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
BusinessMirror
EJAP JOURNALISM AWARDS
BUSINESS NEWS SOURCE OF THE YEAR (2017, 2018, 2019, 2020) DEPARTMENT OF SCIENCE AND TECHNOLOGY
2018 BANTOG MEDIA AWARDS
A broader look at today’s business
www.businessmirror.com.ph
Q
Thursday, June 20, 2024 Vol. 19 No. 247
P. nationwide | sections pages | 7 DAYS A WEEK
BSP MAY DIVERGE FROM FED ON RATE CUT TACK By Cai U. Ordinario
VP Sara says goodbye to constituents at DepEd
@caiordinario
I
NFLATION may have already peaked and consumers can heave a sigh of relief as prices trend downward in the coming months, according to international economists. HSBC Asean economist Aris Dacanay and Oxford Economics Lead Economist Adam Slater both expect inflation to ease, giving room for monetary authorities to adjust policy rates. Dacanay said while they do not expect the Bangko Sentral ng Pilipinas (BSP) to cut its rate ahead of the US Federal Reserve, they recognized that the Monetary Board “is becoming more independent from the Fed.” “We cannot sleep on the fact that the Philippines’s monetary policy is becoming more independent from the Fed,” Dacanay said. “If these fundamentals continue to improve and we see the Fed dot plot delaying its first rate cut, perhaps, to next year, the BSP might not necessarily need to follow suit.” Dacanay said, nonetheless, that there are signs that the BSP may be able to cut rates ahead of the Federal Reserve. These include the faster-than-expected recovery of the current account deficit. He added that the country’s Foreign Direct Investment (FDI) outlook is “showing promise” and that the country remained the only Asean economy whose real policy rate differentials exceeds pre-pandemic levels. “By keeping its ‘less hawkish’ stance, we expect the BSP to stand in contrast to the Fed’s hawkish pause, suggesting that the BSP won’t necessarily need to wait for the Fed,” Dacanay said. “It will be a bold move by the central bank, but we think the BSP finds confidence in something market players may have been sleeping on—the economy’s fundamentals,” he added. Meanwhile, Oxford Economics in a recent brief noted that global inflation is expected to continue slowing in the coming months. Slater said in the brief that the UKbased think tank expects inflation rates in the G7 to keep falling to 2 percent or lower in 2024-2025. See “BSP,” A
By Claudeth Mocon-Ciriaco @Claudethmc3
W
ITHOUT giving a reason, Vice President Sara Z. Duterte on Wednesday tendered her “irrevocable” resignation as Secretary of Education and co-chairperson of the National Task Force to End Local Communist Armed Conflict (NTF-Elcac). She bade farewell to her DepEd constituents in a lengthy press conference that she held after leaving the Palace. Duterte personally went to Malacañang around 2:21 p.m. to tender her resignation, effective
July 19, 2024. “Earlier today, June 19, 2024, I sought an audience with the Continued on A
RECTO LEADS PHL TEAM IN PEB IN JAPAN, WOOS TOP INVESTORS By Reine Juvierre Alberto @reine_alberto
F
INANCE Secretary Ralph G. Recto spearheaded the Philippine delegation during the Philippine Economic Briefing held in Japan on June 19, encouraging Japanese companies to broaden their business presence in the country. The Department of Finance (DOF) said on Wednesday the delegates met with top executives of Japanese companies, such as the Sojitz Corporation, Mitsubishi Corporation, Mura-
ta Manufacturing Co., Ltd. and Sumitomo Corporation. “The Philippines aims to leverage the technological expertise of these top-notch companies to spur industry development and economic growth,” the DOF said. Sojitz Corporation operates diverse businesses, from commodities trading to several investment projects in agriculture, food, telecommunication, infrastructure, property development, automotive and mining in the Philippines. GlobSee “Recto,” A
HERO’S FAREWELL GOES GLOBAL H.E. Gilberto Fonseca Guimaraes de Moura, Brazil’s Ambassador to the Philippines, graced the unveiling ceremony of the Portuguese translation of “Mi Ultimo Adiós” at Fort Santiago, Manila. He was joined by Intramuros Administrator Atty. Joan Padilla, National Historical Commission of the Philippines Executive Director Carminda Arevalo, and Department of Foreign Affairs Assistant Secretary Celia Anna Feria. The top photo shows Arevalo looking at a poster detailing José Rizal’s life and legacy inside Fort Santiago, highlighting significant moments from his early life to his ultimate sacrifice for the Philippines’ independence. This event was part of the commemoration of the 163rd birth anniversary of the national hero, José Rizal. NONIE REYES
PESO EXCHANGE RATES US 58.6740 Q JAPAN 0.3718 Q UK 74.5805 Q HK 7.5154 Q SINGAPORE 43.4397 Q AUSTRALIA 39.0475 Q SAUDI ARABIA 15.6385 Q EU 63.0335 Q KOREA 0.0425 Q CHINA 8.0887 Source: BSP (June 19, 2024)