BSP: OFW remittances could hit $37 billion in 2023
Metro Manila (CNN Philippines, November 17) – An official of the Bangko Sentral ng Pilipinas (BSP) said that remittances from overseas Filipino workers (OFWs) could hit $37 billion in 2023.
Eli Remolona latest news
BSP keeps policy rate untouched at 6.5%
MANILA, Philippines — The Bangko Sentral Ng Pilipinas’ Monetary Board has decided to retain its policy rates for November 2023.
Quick look at the week ahead
The first half of the week is going to be dominated by analyst and press briefings from some of the PSE’s bluest of blue-chip companies. Someone from the MB team will be able to cover some of these events, but if any MB readers attend and have any comments, please let me know your thoughts and I’ll include your comments in a post. The first of the true calendar events happens on Wednesday, and that’s the MSCI rebalancing announcement. On the same day, the PSE will start its STAR Investor Day event, with Day 1 kicking off at 10AM. The event will continue on Thursday for a second and final day, which is when the BSP’s Monetary Board will meet and decide on whether to raise rates, and also when the 365-day lockup for the majority of the outstanding shares for Alternergy [ALTER 0.92 ?1.1%; 163% avgVol] will expire.MB BOTTOM-LINE: I’m a huge proponent of the PSE’s STAR Investor Day program and its aim to increase the engagement of non-professional investors in the workings of the exchange, and to likewise encourage the listed companies to engage directly with the public and with shareholders. Check out this link to register for the free event. I know the rebalance crew is going to be getting excited to hear what MSCI will do, but for me, my attention is all on the Monetary Board and what it will do on Thursday. I think it will be a little anti-climactic now, though, when you combine the BSP’s off-cycle hike with a surprisingly low October inflation print, the surprisingly high Q3 GDP print, and the US Fed’s decision to not raise rates. The PHP/USD exchange rate is even chilling out in the high ?55s, nowhere near BSP Governor Eli Remolona’s redline of ?57/$1. I don’t expect the BSP to do anything. I think the focus now is probably to set the table for the government to try and save the full-year GDP growth rate with a strong Q4 showing, and another rate hike (on top of a rate hike that might have been extraneous) would not help that agenda at all.
BSP raises policy rate by 25 basis points
MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) raised its benchmark interest rates as a measure to curb inflation.
BSP considering off-cycle rate hike as early as tomorrow if inflation data looks ugly
The Governor of Bangko Sentral ng Pilipinas (BSP) [link], Eli Remolona, told reporters yesterday that worries of quickening inflation have put an off-cycle rate hike “on the table”. The Monetary Board isn’t scheduled to meet until November 16th, but Mr. Remolona said if “the data says inflation will go up very significantly” the Monetary Board “may go for an off-cycle hike as early as Thursday”, but that a potential hike could “also happen next week.”MB BOTTOM-LINE: The Philippine Statistics Authority isn’t scheduled to release the CPI data for October until November 7, so I’m not exactly sure what data the BSP would be looking at that could trigger such an aggressive response. If the big concern is the USD/PHP exchange rate, then I’m even more confused because the rate has remained more or less stable in the ?56.5 to ?56.9 range since the beginning of August. Mr. Remolona said that he would defend the ?57/$1 psychological line, but a breach of that level doesn’t appear to be imminent so I’m not sure where the sudden rush to raise rates is coming from. Either way, the BSP appears to be grooming the market to expect a raise, basically at any time over the next three weeks. A rate hike would help support the Philippine Peso’s valuation relative to the dollar, and protect firms that have significant US dollar-denominated debts, but it would also push REIT yields higher and suppress REIT stock prices as a result.
LandBank, DBP won't have special treatment – BSP chief
MANILA, Philippines — The LandBank (LBP) and the Development Bank of the Philippines (DBP) will not get special treatment with regard to the capitalization requirement of the Bangko Sentral ng Pilipinas (BSP).
Remolona: Big banks remain stable amid risks
Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona said Wednesday the domestic banking industry remains sound and stable despite some risks that needed to be closely monitored.
BSP hints of interest rate hike in November
The Monetary Board, the policy-making body of the Bangko Sentral ng Pilipinas, will likely raise the policy interest rate by 25 basis points in its November meeting, Governor Eli Remolona said Wednesday.