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Overseas news
Israel and Lebanon have agreed to a 10-day ceasefire starting Thursday. This raised hopes for broader peace in the region as negotiations continue for a firmer agreement.
Conflict in the Middle East has caused volatility across global markets as events triggered a major oil supply disruption, raising the price of petroleum products.
Relatedly, the International Monetary Fund (IMF) warned on Thursday that Asia is especially vulnerable to war-induced energy shocks due to its heavy reliance on Middle Eastern fuel.
An IMF executive cautioned that prolonged supply disruptions could sharply hit Asian growth despite the region’s economic resilience following last year’s US tariff changes.
Local developments
Consumer electricity rates will increase by about P0.11 per kilowatt-hour starting September 2026. This comes after the Energy Regulatory Commission (ERC) approved Meralco’s petition to recover over P4 billion in costs linked to an affiliate’s gas plant.
Power rate hikes can affect both households and businesses. Such increases could raise manufacturing costs, which may impact prices.
Meanwhile, the peso strengthened to P59.97 per dollar on Thursday. It was supported by hawkish signals from Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona.
He said the BSP has room to raise rates to manage growing inflation amid the Middle East situation.
In finance, a “hawkish” monetary policy pushes for high interest rates to fight inflation. Higher interest rates tend to strengthen a currency.
Additionally, President Ferdinand Marcos Jr. has eased foreign investment rules by allowing up to 40% foreign ownership in small retail enterprises with paid-up capital of below P25 million.
This change, which is aimed at attracting more overseas investors, marks a significant shift from previous rules that prohibited foreign ownership in small retailers.
While a ceasefire in the Middle East may bring some stability, it might be too soon to tell how things will unfold in the long run. You may want to hold off on major investing changes for now.
