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

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