ECCP at Work

Benign inflation gives BSP room to cut
June 2024 inflation in the Philippines remained below the BSP’s 2-4% target, giving the Bangko Sentral ng Pilipinas room for further interest rate cuts to support consumer spending and investment.

PHL debt benchmark now at 70% of GDP, Malacañang claims
Palace Press Officer Clarissa A. Castro told reporters at a briefing that the Department of Finance (DoF) considers 70% of GDP to be the international threshold for sustainable borrowing, as opposed to the 60% rule-of-thumb that multilateral banks often hold developing countries to.

Over half of retail transactions now digital, says BSP
Data from the BSP’s 2024 Status of Digital Payments report showed that digital transactions accounted for 57.4 percent of total monthly retail payment volume and 59 percent of value.

‘High costs hold back waste-to-energy projects’
Waste-to-energy (WTE) technology offers huge potential to bolster the country’s power supply, but high costs keep it from gaining momentum.

First phase of national internet backbone benefits 17 million, 600 government offices
Some 17 million Filipinos and 600 government offices have already benefited from the first phase of the National Fiber Backbone (NFB) project, according to President Ferdinand Marcos.

Marcos open to online gaming tax
Finance Secretary Ralph G. Recto last week said they will propose an online gaming tax and are also studying other policy options “to deter unimpeded and practically unrestricted access to gambling, particularly digital gambling platforms.”

Grid operator to start P28-billion cost recovery next month, ERC says
The Energy Regulatory Commission (ERC) said the National Grid Corp. of the Philippines (NGCP) has been cleared to begin implementing the staggered cost recovery of at least P28.29 billion in the August billing month.

PH June foreign reserves inch up to $105.3B — BSP
The Philippines’ gross international reserves (GIR) edged higher to $105.323 billion as of end-June, up slightly from $105.176 billion in May, the Bangko Sentral ng Pilipinas (BSP) reported late Monday.

Gov’t debt service bill climbs in May — BTr
The National Government’s (NG) debt service bill climbed in May as it ramped up both principal and interest payments, data from the Bureau of the Treasury (BTr) showed. Debt payments went up by 16.04% to P80.05 billion in May from P68.98 billion in the same month last year, latest Treasury data showed.

PSEi weakness seen ahead of July 9 deadline for Trump’s tariffs
The local stock market may face further declines as global tariff tensions rise with the end of the U.S.–China truce on July 9, prompting investor caution.

Coffee, sugar put forward for possible RCEF-type support
The Philippine Chamber of Agriculture and Food, Inc. (PCAFI) asked the 20th Congress to pass legislation that will boost coffee and sugar production, using as a model the Rice Competitiveness Enhancement Fund (RCEF), which finances rice farm modernization with rice import tariffs.

T-bill, bond yields seen easing
Rates of Treasury bills (T-bills) and Treasury bonds (T-bonds) could end mostly lower at separate auctions this week after the Bangko Sentral ng Pilipinas (BSP) signaled two more rate cuts this year. The Bureau of the Treasury (BTr) will auction off P25 billion in T-bills on Monday — P8 billion each in 91- and 182-day debt and P9 billion in 364-day securities.

FSCC monitoring potential vulnerabilities, risks amid shifting global conditions
The Financial Stability Coordination Council (FSCC) is closely monitoring potential vulnerabilities in the Philippine financial system amid a fragile global economic environment.