Philippine Economy Talk

**uls** · June 11th, 2018 07:28 PM

lots of imports + not so much exports = trade deficit ---> current account deficit ---> pressure on PHP

import prices going up = inflation

**baludoy** · June 12th, 2018 04:22 AM

I was surprised to learn sugar was this expensive na pala

Local juice maker halts production >> Manila Bulletin Business

do what you gotta do so you can do what you wanna do

**A121** · June 12th, 2018 10:59 AM

Originally Posted by uls

lots of imports + not so much exports = trade deficit ---> current account deficit ---> pressure on PHP

import prices going up = inflation

BSP turning dovish as well

**uls** · June 12th, 2018 11:18 AM

Originally Posted by A121

BSP turning dovish as well

totally

after that lower-than-expected May inflation number they're now on wait-and-see mode

sigurado no rate hike this month

you have 1 tiny 25bps rate hike last month but 2 100bps RRR cuts (1 in Feb and 1 last month)

the central bank seems to be more focused on growth rather than inflation

they're not supporting the peso that's why it keeps falling

unlike Indonesia's central bank that raised rates 2 times last month (total 50bps) which halted the rupiah's slide

**uls** · June 12th, 2018 11:23 AM

bond investors are demanding higher interest rate from the PH government to compensate for higher inflation

**A121** · June 12th, 2018 11:23 AM

Originally Posted by uls

totally

after that lower-than-expected May inflation number they're now on wait-and-see mode

sigurado no rate hike this month

you have 1 tiny 25bps rate hike last month but 2 100bps RRR cuts (1 in Feb and 1 last month)

the central bank seems to be more focused on growth rather than inflation

they're not supporting the peso that's why it keeps falling

unlike Indonesia's central bank that raised rates 2 times last month (total 50bps) which halted the rupiah's slide

Yaaaas.