MANILA: The Philippine central bank is considering “strong monetary action” at its meeting next month to tame inflation and foreign exchange volatility, its governor said on Friday, signaling a third interest rate rise this year.
Inflation rose to 5.2 percent in July, the highest level in more than five years and above the central bank’s 2-4 percent target rate. It is expected to quicken in July to 5.3 percent due to higher food, fuel and utility costs, Department of Finance Chief Economist Gil Beltran said.
At the same time, the peso is hovering near a 12-year low against the dollar and is one of the worst performing currencies in Asia.
“The Monetary Board is considering strong monetary action to deal with persistent elevated inflation risks as well as our concern on the volatility in the foreign exchange market,” Bangko Sentral ng Pilipinas Governor Nestor Espenilla told a media briefing.
The central bank’s next scheduled meeting is on August 9, the same day that the government is due to release second-quarter GDP figures and two days after July inflation data is scheduled for publication.
Espenilla said the peso’s weakness is contributing to higher inflation expectations and “developments that may disanchor those expectations warrant a strong response.”
The currency has weakened in recent years as US interest rates started to rise and more recently as global trade tensions mounted.
The BSP raised interest rates last month for the second time in six weeks, becoming the second central bank regionally after Indonesia’s to deliver two increases in a short period of time.
Like other Asian economies with external deficits, the Philippines faces pressure to follow the US Federal Reserve in shifting away from low interest rate settings or risk capital flight as investors seek higher-yielding assets
The Philippines’ key rate, after two hikes of 25 basis points each, is 3.50 percent.
HSBC Economist Noelan Arbis said in a market note he expects the central bank to respond more forcefully next month, with a 50-basis points rate increase to tame inflation.
Philippine central bank considering ‘strong monetary action’ to tame price pressures
Philippine central bank considering ‘strong monetary action’ to tame price pressures
Closing Bell: Saudi main index slips to close at 10,588
RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Sunday, losing 127.15 points, or 1.19 percent, to close at 10,588.83.
The total trading turnover of the benchmark index was SR2.57 billion ($685 million), as 28 of the stocks advanced and 232 retreated.
Similarly, the Kingdom’s parallel market Nomu lost 108.53 points, or 0.46 percent, to close at 23,719.13. This comes as 22 of the stocks advanced while 47 retreated.
The MSCI Tadawul Index lost 17.17 points, or 1.22 percent, to close at 1,393.34.
The best-performing stock of the day was Sport Clubs Co., whose share price surged 3.69 percent to SR9.00.
Other top performers included Flynas Co., whose share price rose 2.55 percent to SR72.30, as well as National Industrialization Co., whose share price surged 2.13 percent to SR10.09.
Consolidated Grunenfelder Saady Holding Co. recorded the most significant drop, falling 6.61 percent to SR8.90.
Sustained Infrastructure Holding Co. also saw its stock prices fall 5.75 percent to SR30.82.
CHUBB Arabia Cooperative Insurance Co. also saw its stock prices decline 5.72 percent to SR22.40.
On the announcements front, Wataniya Insurance Co. said it has received a notice of award for a one-year contract with Saudi National Bank to provide general insurance as well as protection and savings insurance services, in line with agreed terms and conditions.
According to a Tadawul statement, coverage will begin on Jan. 1, 2026. The contract value exceeds 15 percent of the company’s total revenues, based on its latest audited financial statements for 2024.
Wataniya Insurance Co. ended the session at SR14.35, up 1.92 percent.
Fawaz Abdulaziz Alhokair Co., or Cenomi Retail, has announced executing a SR1.5 billion facility agreement structured as a short-term loan with Emirates NBD – Kingdom of Saudi Arabia. A bourse filing revealed that the financing duration is three years with an option to extend for a total of two years.
Cenomi Retail ended the session at SR20.00, up 0.26 percent.
First Milling Co. has announced the Board of Directors’ recommendation to amend the firm’s bylaws Article “Company Management” to increase the number of board members from seven to eight. This change reflects the firm’s commitment to broadening the range of expertise and skills on its board, in line with its growth and expansion plans for the next phase.
The company reiterated its commitment to fulfilling all necessary procedures and obtaining approvals from the relevant authorities. The recommendation will be submitted to the upcoming General Assembly, with the date to be announced in due course.
First Milling Co. ended the session at SR49.22, down 1.06 percent.
