U.S. President Donald Trump announced a new 19% tariff rate for goods from the Philippines on Tuesday after what he called a "beautiful visit" by Philippine President Ferdinand Marcos Jr. to the White House, and said U.S. goods would pay zero tariffs, Reuters reported. The new tariff rate is just below the 20% threatened by Trump earlier this month, but still above the 17% rate set in April when Trump announced what he called reciprocal tariff rates for dozens of countries. It matches the 19% rate announced for Indonesia and bests Vietnam's slightly higher rate of 20%.
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The Philippine central bank delivered a widely expected interest-rate cut to support the economy, warning about slowing global growth and geopolitical risks, the Wall Street Journal reported. Bangko Sentral ng Pilipinas cut its benchmark overnight reverse repurchase rate by 25 basis points to 5.25%, its second reduction so far this year. It lowered its benchmark lending rate to 5.75% from 6.00%. The central bank has now cut rates by 125 basis points since the beginning of the easing cycle in August last year. Thursday’s decision comes after the U.S.
The Philippine central bank cut its policy rate Thursday as widely expected, against a backdrop of cooling inflation at home and trade turmoil abroad, the Wall Street Journal reported. Bangko Sentral ng Pilipinas lowered its benchmark overnight reverse repurchase rate to 5.50%, Gov. Eli Remolona said. The central bank also reduced its benchmark lending rate to 6.00%. The decision had been expected by most economists, with recent Philippine inflation data cementing the case for a cut. Risks from new U.S. tariffs strengthened that argument.
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The Philippine central bank surprised markets by keeping its policy rate on hold, pausing its easing cycle due to what it said was a significant rise in global uncertainty, particularly over trade policy, the Wall Street Journal reported. Bangko Sentral ng Pilipinas maintained its benchmark overnight reverse repurchase rate at 5.75%, Gov. Eli Remolona said Thursday. It also held its benchmark lending rate steady at 6.25%. Risks and uncertainty to the global outlook justify keeping rates on hold now, the central bank governor said.
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The Philippine central bank announced the launch on Monday of an interest rate swaps market anchored to a newly established benchmark rate to enhance bond market trading and liquidity, Reuters reported. The start of IRS transactions follows the recognition by the International Swaps and Derivatives Association of the benchmark - the overnight reference rate (ORR) - which the Bankers Association of the Philippines helped establish.
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Philippine President Ferdinand Marcos Jr. on Monday signed a law that lowers corporate income taxes and boosts incentives for businesses, in a bid to spur more investment into one of Asia’s fastest-growing economies, Bloomberg News reported. The Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy, or CREATE MORE Act, reduces the corporate income tax rate for businesses registered with investment agencies to 20% from 25%.
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Philippine inflation quickened within market expectations in October, giving the central bank room to sustain its easing cycle, Bloomberg reported. Consumer prices rose 2.3% year-on-year in October, matching median economists forecast in a Bloomberg survey and falling within the central bank’s estimate of 2% to 2.8% for the month. Food inflation accelerated as rice price gains snapped a downtrend due to base effects. While inflation ticked up after decelerating in September, average inflation for the past ten months was at 3.3%, still within the central bank’s 2%-to-4% goal.
The Philippine central bank cuts its policy rate for the second time this year as it looks to bolster its economy amid mounting uncertainty abroad, the Wall Street Journal reported. Bangko Sentral ng Pilipinas Gov. Eli Remolona said Wednesday that the central bank would deliver a 25-basis-point cut, lowering its benchmark overnight reverse repurchase rate to 6.00%. It will also cut its benchmark lending rate to 6.50% from 6.75%, he said.
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The Philippine central bank will likely use quarter-point moves to slash its benchmark interest rate by around 175 basis points through the end of next year, according to Governor Eli Remolona, Bloomberg News reported. A 25 basis-point cut is on the cards for the Oct. 16 policy meeting, followed by a reduction of the same size in December, Remolona said. The Bangko Sentral ng Pilipinas is unlikely to resort to half-point cuts as the economy remains robust, he added.
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