PHP: Peso Boosted By Hawkish BSP Rate Decision & Rhetoric
Feb-16 07:19
The peso wiped out its earlier loss as Bangko Sentral ng Pilipinas increased its key policy rate by 50bp and raised its inflation outlook for the Philippines. Consensus was virtually evenly split between 25bp and 50bp, with our Asia-Pac desk leaning towards a larger move.
- The Philippine central bank said it now sees inflation averaging at +6.1% Y/Y this year versus +4.5% pencilled in before, with risks to the outlook "strongly skewed" to the upside and inflation expectations on the rise.
- Governor Medalla speaks at typing, delivering some hawkish rhetoric on top of the rate decision and noted that CPI data indicates a further broadening of price pressures. He stressed that the BSP is "ready to take all needed" steps to bring CPI back to to the target.
- Spot USD/PHP last sits +0.01 at PHP55.20, pulling back from a new cyclical high of PHP55.38. USD/PHP 1-month NDF deals -0.12 at PHP55.25. Both remain above their respective 50-DMAs taken out yesterday.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
UK DATA: Wage growth stronger than expected but rest of the report mixed
Jan-17 07:10
- The higher-than-expected wage growth is likely to be the highlight for markets, and the rest of the labour market report was mixed.
- The redundancy rate increased and the levels of vacancies fell a bit in the 3 months to December (but was still well above its pre-Covid levels).
- However, the inactivity rate went down a little and payrolled employees are still increasing.
- There is little movement in GBP FX but we may see a little more of a move at 7:30GMT when STIR markets open.
- Markets, however, will also be looking forward to tomorrow's CPI print which will take on even more relative importance for the MPC given that overall today's report can be categorised as fairly close to expectations.
MNI: GERMANY DEC FINAL HICP -1.2% M/M (=FLSH ); NOV 0.0% M/M
Jan-17 07:02
- MNI: GERMANY DEC FINAL HICP -1.2% M/M (=FLSH ); NOV 0.0% M/M
- GERMANY DEC FINAL HICP +9.6% Y/Y (= FLSH); NOV +11.3% Y/Y
MNI: UK DEC CLAIMANT CHG +19700
Jan-17 07:00
- MNI: UK DEC CLAIMANT CHG +19700
- UK DEC CLAIMANT RATE +4%
- UK NOV ILO UNEMPLOYMENT RATE +3.7%
- UK NOV AVE WEEKLY EARNINGS +6.4% YY
- UK NOV AVE WEEKLY EARNINGS EX-BONUS +6.4% YY
