MANILA, Philippines – The Philippines remains in a sweet spot with a lot of room for investment and economic activities, the Union Bank of Switzerland (UBS) said in its latest report.
“The lack of excess suggests the Philippine economy is still in a sweet spot. Easy monetary policy settings and rich asset valuations can encourage excesses in domestic credit and investment activity, but these have yet to show up in a meaningful way,” UBS said in a report released last week following the 25-basis points reduction in key policy rates by the Bangko Sentral ng Pilipinas (BSP).
On Thursday, the BSP reduced the overnight borrowing rate to a low of 3.75 percent and the lending rate to 5.75 percent on concerns over global growth risks.
In its report, UBS raised the question as to whether it was necessary for monetary authorities to raise rates.
It said that easing monetary policy may spur credit but this has yet to be seen.
UBS also said the Philippine economy is not immune to the global external risks such as the crisis in the euro zone.
“At the same time, the Philippine economy is not immune to global headwinds. In the context of international risks to the Philippine economy and low inflation, a reasonable case for policy easing can and has been made by the BSP,” UBS said.
It said that earlier BSP monetary policy should be good for asset prices.
UBS said it expects the policy rate to be at 3.75 percent for the overnight borrowing rate and the peso at 42 to the dollar by yearend.
The inflation rate dipped to 2.8 percent in June from 2.9 percent in May, according to latest data from the National Statistics Office.
The June inflation brought year-to-date inflation at three percent, falling at the lower end of the central bank’s three to five percent target for 2012. –Iris C. Gonzales (The Philippine Star)
July 2025
Nutrition Month
“Give us much more than P50 increase
for proper nutrition!”
Invoke Article 33 of the ILO Constitution
against the military junta in Myanmar
to carry out the 2021 ILO Commission of Inquiry recommendations
against serious violations of
Forced Labour and Freedom of Association protocols.
Accept National Unity Government (NUG)
of Myanmar. Reject Military!
#WearMask #WashHands #Distancing #TakePicturesVideosturesVideos
July
3 July – International Day of Cooperatives
3 July – International Plastic Bag Free Day
5 July – World Youth Skills Day
7 July – Global Forgiveness Day
11 July – World Population Day
17 July – World Day for International Justice
28 July – World Nature Conservation Day
30 July – World Day against Trafficking in Persons
Monthly Observances:
Schools Safety Month
Nutrition Month
National Disaster Consciousness Month
Weekly Observances:
Week 2: Cultural Communities Week
Micro, Small, and Medium Enterprise
Development Week
Week 3: National Science and
Technology Week
National Disability Prevention and
Rehabilitation Week
July 1-7:
National Culture Consciousness Week
July 13-19:
Philippines Business Week
Week ending last Saturday of July:
Arbor Week
Daily Observances:
First Saturday of July:
International Cooperative Day
in the Philippines
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