PHILIPPINES: February CPI Up as Base Effects Fade
Mar-05 01:28
- For the first time in a year, Philippines CPI moved above the bottom end of BSP range of 2.00%.
- February saw a rise in consumer prices of +2.4% YoY, from +2.0% in January.
- Core CPI rose to +2.9% YoY
- Prices in the capital rosee +1.9% YoY
- MoM inflation was softer than expected at +0.2% (est. +0.3%, prior +0.8%)
- At the last monetary policy meeting on 19 February 2026, Bangko Sentral ng Pilipinas (BSP) Governor Remolona described inflation as "manageable" despite a projected "slight uptick" later in the year. Remolona noted that any immediate rise in inflation is driven primarily by supply-side factors, which are viewed as temporary. The BSP's risk-adjusted inflation forecast for 2026 was revised upward to 3.6% (from 3.1%), partly due to higher global oil and rice prices. Inflation is expected to move closer to the central bank's 3.0% midpoint target by 2027. The Governor emphasised that inflation expectations remain "well anchored", providing the bank with flexibility to ease rates.
- Following the 19 February 2026 meeting, Governor Eli M. Remolona, Jr. indicated the bank's intent to reach a neutral rate—the theoretical level that neither stimulates nor restricts the economy—but emphasized doing so "smoothly" to avoid reigniting inflation. Future moves toward a fully neutral stance depend on inflation remaining within the 2.0%–4.0% target range.
- The BSP does not meet again until 23 April.
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CHINA: Central Bank Withdraws CNY296.5bn via OMO
Feb-03 01:26
A large withdrawal of liquidity today as repo rates show signs of stabilizing following a lower close from the CFETS yesterday.
- The PBOC issued CNY105.5bn of 7-day reverse repo at 1.4% during this morning's operations.
- Today's maturities CNY402bn.
- Net liquidity withdrawal CNY296.5bn.
- The PBOC monitors and maintains liquidity in the interbank system through the issuance of reverse repo.
- The CFETS Pledged Repo Deposit Institutions 7 Day Weighted is at 1.47%, from prior close of 1.49%.
- The China overnight interbank repo rate is at 1.31%, from the prior close of 1.36%.
- The China 7-day interbank repo rate is at 1.51%, from the prior close of 1.48%.
MNI: CHINA PBOC CONDUCTS CNY105.5 BLN VIA 7-DAY REVERSE REPO TUES
Feb-03 01:24
- CHINA PBOC CONDUCTS CNY105.5 BLN VIA 7-DAY REVERSE REPO TUES
CHINA SETS YUAN CENTRAL PARITY AT 6.9608 TUES VS 6.9695
Feb-03 01:23
- CHINA SETS YUAN CENTRAL PARITY AT 6.9608 TUES VS 6.9695
