by magnolia_eic | Jul 10, 2010 | Business, Headlines, National News
PRICES of major commodities may peak sometime in the third quarter following a slowdown in June, but it is still possible that full-year inflation may be lower than the 4.7 percent average forecast, the Bangko Sentral ng Pilipinas (BSP) said on Thursday.
“We already lowered our forecast (during the last monetary policy stance meeting) to 4.7 percent from 5.1 percent. We may lower it again on the next meeting. We will study the data we have,” BSP Gov. Amando Tetangco said.
At the start of the year, the BSP said that inflation for this year would be within the target range of 3.5 percent to 5.5 percent, and set a forecast average of 4.7 percent for the full year.
But the BSP is not counting out the possibility of inflation going higher in the coming months even if it went down to 3.9 percent in June.
On Tuesday, the National Statistics Office said the headline inflation rate decelerated to 3.9 percent in June from 4.3 percent in May, further bolstering the central bank’s view that inflation this year will be “fairly safe.”
“June inflation at 3.9 percent is just a tad above the lower end of our forecast range for the month and nearly half a percentage point lower than the level in May of 4.3 percent. This inflation path therefore puts the full year inflation targets for 2010 and 2011 fairly safe,” Tetangco said. (PIA-Bohol)
by magnolia_eic | Jul 9, 2010 | Business, Headlines, National News
THE Aquino administration will embark on an aggressive liability management effort by exploring various options available to government, Finance Secretary Cesar Purisima said on Wednesday.
Purisima said the new government would review the current borrowing program set by the previous administration.
“What we want is to lengthen maturities,” said Purisima, adding that in three to four years, there would be some bunching up of maturities.
As such, he said the government would embark on a liability management effort by reviewing existing borrowing strategies and future plans.
Options include doing debt swaps and bond exchanges.
“We will consider all instruments available to us based on the right price and the right cost. It will also depend on the timing,” he said.
Purisima did not provide details on when the review would be concluded. (PIA-Bohol)
by magnolia_eic | Jul 8, 2010 | Business, Headlines, National News
THE Bangko Sentral ng Pilipinas (BSP) said that consumers will continue to enjoy lower money transfer and remittance costs due to heightened competition between banks and companies that offer money transfer and remittance services.
BSP Deputy Governor Nestor Espenilla Jr. said in an interview with reporters that companies that offer money transfer and remittances services have been forced to lower their fees in light of the strong competition from banks that offer similar services as well as providers of mobile banking services.
He pointed out that the central bank no longer needs to step in and intervene in the sector as competition has forced companies engaged in the money transfer and remittance business to lower their fees.
To date, the BSP said there are about eight million users of mobile banking in the Philippines boosting the central bank’s efforts to provide financial services in rural and hard to reach areas at a lower cost and higher efficiency.
These users of electronic money (e-money) transact through Smart Money of PLDT-controlled Smart Communications and G-cash of Ayala-controlled Globe Telecom in the Philippines.
Espenilla said the number of banks offering mobile banking for microfinance operations has reached 49 rural banks from none before 2005. (PIA-Bohol)
by magnolia_eic | Jul 7, 2010 | Business, Headlines
THE economy is poised to grow by 6.2 percent this year on the back of a recovering global environment, the Institute of International Finance (IIF) said in its latest report on the country.
IIF said that aside from a recovery in the global economy, investors’ optimism on the new government also bodes well for the country.
The global research firm believes that President Aquino is likely to take the “window of opportunity” provided by favorable economic trends, in pursuing fiscal reforms that would boost gross domestic product (GDP).
It also welcomed the news that Mr. Aquino’s priority would be to address the fiscal slippage which he described as “alarming.”
IIF said the Aquino administration should be able to reverse the worsening budget deficit trend before it undermines investor confidence. (PIA-Bohol)
by magnolia_eic | Jun 29, 2010 | Business, Headlines, National News
Manila, Philippines – the Department of Trade and Industry has issued an administrative order removing the expiration of gift certificates, checks and cards.
Zenaida Maglaya, Trade Undersecretary said, the order was issued last June 25 and would become effective upon its publication in July.
Maglaya added that the issue on the expiration of gift checks had already been discussed at the time when Peter Favila was still Trade secretary in response to the complaints of consumers about the short usage period given by the sellers.
Commercial establishments usually give an expiration term of one-year from date of issuance on their gift checks.
According to the DTI, the practice is contrary to state policy on protection of consumer welfare and interest and promotion of fair, honest, and equitable relations between parties in consumer transactions.
Click here for full article from Philippine Star
by magnolia_eic | Jun 23, 2010 | Business, Headlines
CHINA’S move to allow the yuan to appreciate could benefit the Philippines, the central bank and analysts said on Sunday.
Removal of the dollar peg would, in particular, make Philippine exports more attractive, some analysts said, although others pointed out that any gains — trade or otherwise — required a significant appreciation of the currency.
Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco, Jr. said in a text message to reporters that the move by [Chinese] authorities to improve the exchange rate mechanism and increase the regime’s flexibility reflects an assessment from authorities that the recovery in Chinese economy is on a more solid footing.
The People’s Bank of China (PBOC) last Saturday announced that it would “increase the … exchange rate flexibility” of the yuan, effectively signaling a departure from the 23-month-old dollar peg which the government installed at the height of the 2008 financial crisis.
The announcement came shortly before a G20 summit in Canada this weekend, where China was expected to receive flak for keeping the yuan weak to fortify its external trade advantage.
(PIA-Bohol)
