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A broader look at today’s business Friday, May 17, 2024 Vol. 19 No. 213
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BSP KEEPS RATES, BUT
EYES 2 CUTS IN 2ND HALF By Cai U. Ordinario
STILL RESISTING Transport group Manibela stages a protest against the jeepney phaseout as its members make their way to the Land Transportation Franchising and Regulatory Board (LTFRB) head office on East Avenue, Quezon City on Thursday, May 16, 2024. Authorities began Thursday the campaign to apprehend unconsolidated jeepneys as part of the transition to the pulic utility vehicle modernization program. NONOY LACZA
@caiordinario
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HE Bangko Sentral ng Pilipinas (BSP) is eyeing to cut key policy rates twice in the second half of the year. BSP Governor Eli M. Remolona Jr. told reporters this may be delivered in increments of 25 basis points. This means, the maximum rate cut that is expected to be delivered by the Monetary Board is 50 basis points by the end of the year. If the BSP will cut rates by a maximum of 50 basis points, this will place key policy rates at 6 percent by the end of the year. “Yung 50 pang ano na yun, takot na kami sa hard landing. Pero mukha namang maliit yung probability ng hard landing, soft landing [yan] [Cutting rates by 50 [bps] means we fear a hard landing. But it seems the probability of this happening is small, it would likely be a soft landing],” Remolona said. “Ang ano ng mga central bank, gradual eh. It would be 25-25. Pag 50 ibig sabihin malaki ang nangyari. Medyo pang hard landing na yung 50 or 75 [Central banks are inclined to cut rates gradually. It would be (in increments of) 25-25 (bps). If they will deliver a 50 (bps) cut, this means something big happened. A rate cut of 50 or 75 is for a hard landing].” Should this happen, the BSP would be cutting its policy rates ahead of the United States Federal Reserve which is expected to deliver its rate cuts starting in September. See “BSP,” A
NEDA: NO TARIFFS ON ELECTRIC VEHICLES, PARTS UNTIL 2028
Investment pledges to IPAs down 63.6% in Q1, says PSA
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HE national government has decided not to impose any tariffs on electric vehicles, their parts, and components until 2028, according to the National Economic and Development Authority (Neda). In a statement on Thursday, Neda said the Neda Board, the highest policymaking body of the agency and is chaired by the President, approved the recommendation of the interagency Committee on Tariff and Related Matters (CTRM).
This was made after the CTRM's review of Executive Order No. 12 series of 2023. The order temporarily modified the rates of import duty on electric vehicles (EVs), their parts, and components under the purview of the Customs Modernization and Tariff Act. “Executive Order No. 12 is designed to stimulate the electric vehicle (EV) market in the country, support the transition to emerging technologies, See “Neda,” A
NVESTMENT pledges made by foreigners to the country’s Investment Promotion Agencies (IPAs) contracted 63.6 percent in the first three months of the year, according to the Philippine Statistics Authority (PSA). Based on the data, Total Foreign Investment (FI) pledges approved in the first quarter of 2024 were recorded at P148.43 billion, significantly lower than the P408.22 billion approved in the same quarter of 2023. Of the total approved foreign investments, Singapore posted the highest investment commitment of P70.06 billion or 47.2 percent. This was followed by the Nether-
lands at P38.89 billion or 26.2 percent of the total; and South Korea at P20.23 billion or 13.6 percent of the total. PSA data showed the largest declines in foreign investment were recorded by Germany with a decline of 100 percent; British Virgin Islands, 95.4 percent; and France, 94.9 percent. The data also showed Japan investments contracted 75.9 percent to P920.93 million while investments from the United States contracted 35.3 percent to P1.16 billion in the first quarter. See “Investment,” A
PESO EXCHANGE RATES Q US 57.6340 Q JAPAN 0.3723 Q UK 73.1203 Q HK 7.3810 Q CHINA 7.9852 Q SINGAPORE 42.8442 Q AUSTRALIA 38.5571 Q EU 62.7404 Q KOREA 0.0426 Q SAUDI ARABIA 15.3678 Source: BSP (May 16, 2024)