Bangko Sentral Ng Pilipinas
Thursday Central Bank Derby Results in Japanese Forex Intervention, Many Interest Rate Hikes, and One Bizarre Cut
September 22, 2022
Net overnight movements in the dollar have ranged widely from a 1.8% plunge against the yen to a 1.1% rise versus the Swiss franc. In between, the dollar fell 0.3% versus the euro, Australian dollar, and sterling. After numerous rhetorical complaints by officials about the weakness of the yen, Japanese officials sold foreign currency directly […] More
Rate Hike in the Philippines
August 18, 2022
The Filipino policy interest rate was increased by another 50 basis points to 3.75%. May had seen the first increase since November 2018, a hike of 25 basis points. Another 25-bp hike was agreed at the June central bank monetary board meeting, followed by a 75-basis point increase in July. The total increase of 175 […] More
Central Banks See Little Alternative but to React to Elevated Inflation
August 18, 2022
The reinforcing cycle of high inflation and rising central bank interest rates has made a favorable environment for the dollar, which rose another 0.2% overnight against the yen, euro, yuan, peso and on a DXY weighted basis. The U.S. currency also climbed 0.4% versus the kiwi and 0.3% relative to the Swiss franc but is […] More
Filipino Central Bank Rate Hike
July 14, 2022
Officials at the Central Bank of the Philippines had not scheduled a policy review for today. But with Filipino CPI inflation jumping 0.7 percentage points to 6.1% in June, a 92-month high and over 2 percentage points above the target corridor of 2-4%, they felt they could not delay intensifying the monetary tightening cycle any […] More
Revolting Developments but the Dollar Rally Plays On and Central Bankers Scramble to Catch Up
July 14, 2022
Not for the first time this year, JP Morgan CEO Jamie Dimon’s candid remarks about a deteriorating global economic outlook has fanned investors’ flight to safety. The litany of problems includes soaring inflation, tighter monetary policies, Russia’s relentless destruction of Ukrainian infrastructure, other geopolitical tensions, and weakening business and consumer confidence. He could have added […] More
Emerging Evidence of A More Pressing Recessionary Risk in Europe than the United States
June 23, 2022
Preliminary June purchasing manager survey results highlight scant demand, a rise in unsold inventories, a mounting drag from elevated inflation, and weakening trends in both business and consumer confidence. The findings contrast with Fed Chairman Powell assertion yesterday that, while the U.S. situation presents a challenging one to policymakers, the risk of a near-term recession […] More
First Filipino Interest Rate Hike Since November 2018
May 19, 2022
At the Central Bank of The Philippines, the overnight interest rate was lifted 25 basis points to 2.25% today. This was the first increase since November 2018 but leaves the rate level 175 basis points under its pre-pandemic level of 4.0%. Filipino CPI inflation rose from 3.0% in January and February to a 40-month high […] More
Reacting to Diverse Monetary Stances, Newly Heightened Ukraine-Russian Tensions, and Possible Enhanced World Oil Supplies
February 17, 2022
The dollar fell overnight by 0.4% against the yen and kiwi, 0.3% relative to the yuan, and 0.1% versus the Swiss franc. The dollar also advanced 1.7% against the Turkish lira, 0.2% vis-a-vis the Mexican peso, and 0.1% against the euro and Canadian dollar. U.S. equity futures point to a lower open. Equities closed 0.8% […] More
A Diversity of Central Bank Rate Decisions… Dollar and Equities Mixed
November 18, 2021
Central bank officials today cut Turkey’s one-week repo rate by 100 basis points, left record-low policy interest rates unchanged in the Philippines and Indonesia, and are widely expected to announce an interest rate hike in South Africa. This year’s unexpectedly sharp acceleration of inflation to multi-year and multi-decade highs around the world has overshadowed Covid […] More
Dollar Starting Week on a Rising Note, whereas Share Prices and Sovereign Debt Yields Move Lower
July 12, 2021
The dollar climbed 0.6% against the Mexican peso and New Zealand dollar, 0.5% versus the Australian dollar, 0.4% vis-a-vis the loonie, 0.3% relative to sterling an 0.1% against the yen but is steady versus the euro and yuan. Stocks in the Pacific Rim had closed up 2.3% in Japan, 0.9% in Taiwan, 0.8% in Australia […] More
