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
Saudi Arabia ranks 2nd globally in digital government, World Bank 2025 index shows
WASHINGTON: Saudi Arabia has achieved a historic milestone by securing second place worldwide in the 2025 GovTech Maturity Index released by the World Bank.
The announcement was made on Thursday during a press conference in Washington, DC, which evaluated 197 countries.
The Kingdom excelled across all sub-indicators, earning a 99.64 percent overall score and placing it in the “Very Advanced” category.
It achieved a score of 99.92 percent in the Core Government Systems Index, 99.90 percent in the Public Service Delivery Index, 99.30 percent in the Digital Citizen Engagement Index, and 99.50 percent in the Government Digital Transformation Enablers Index, reflecting some of the highest global scores.
This includes outstanding performance in digital infrastructure, core government systems, digital service delivery, and citizen engagement, among the highest globally.
Ahmed bin Mohammed Al-Suwaiyan, governor of the Digital Government Authority, attributed this achievement to the unwavering support of the Saudi leadership, strong intergovernmental collaboration, and effective public-private partnerships.
He highlighted national efforts over recent years to re-engineer government services and build an advanced digital infrastructure, which enabled Saudi Arabia to reach this global standing.
Al-Suwaiyan emphasized that the Digital Government Authority continues to drive innovation and enhance the quality of digital services, in line with Saudi Vision 2030, supporting the national economy and consolidating the Kingdom’s transformation goals.
The 2025 GTMI data reflects Saudi Arabia’s excellence across key areas, including near-perfect scores in core government systems, public service delivery, digital citizen engagement, and government digital transformation enablers. This balanced performance places the Kingdom firmly in the “Grade A” classification for very advanced countries, demonstrating the maturity of its digital government ecosystem.
Saudi Arabia’s progress in the index has been remarkable: from 49th place in the 2020 edition, to third in 2022, and now second in 2025, confirming its status as a global leader in digital transformation and innovation.
The achievement also reflects the Kingdom’s focus on putting people at the center of digital transformation, enhancing user experience, improving government efficiency, and integrating artificial intelligence and emerging technologies across public services.
