Overseas news
Oil prices dipped on Thursday, with Brent crude and US West Texas Intermediate (WTI) both seeing slight declines.
This happened as investor concerns over potentially higher US tariffs outweighed an anticipated increase in supply from major crude producers.
On July 9, the 90-day pause on increased US tariffs is set to expire. Steep tariffs could drive up the costs of goods and services, which may affect economic activity and the demand for oil.
Meanwhile, Japanese household spending grew 4.7% year-on-year in May, a significant increase that exceeded the median market forecast. Spending also rose versus the previous month by a seasonally adjusted 4.6%.
Household spending makes up a large part of a country’s gross domestic product (GDP) and so it’s an important indicator of an economy’s health. It’s also 1 of the factors that a central bank looks at when deciding what to do with interest rates.
Local developments
The Bangko Sentral ng Pilipinas (BSP) might deliver 2 more interest rate cuts this year, according to BSP Governor Eli Remolona Jr.
Low inflation and a slight dip in economic growth leave room for further rate cuts, but such moves may not fully offset the growth slowdown, said Remolona.
Reduced interest rates can make it less costly to borrow money. This can help boost economic growth and activity, though the effects may not be seen right away.
Meanwhile, the national government’s outstanding debt reached a record high of P16.92 trillion by the end of May, an increase of 0.99% from April.
New domestic debt issuances contributed to the increase, though the rise was partially held back by the stronger peso.
Additionally, the Department of Finance (DoF) is proposing a tax on online gaming and examining policies to restrict gambling access, including on digital platforms. If imposed, a new tax can contribute to the government’s revenue sources.
The latest news shows no strong indications of big market changes happening right away. A wait-and-see approach may be appropriate as you keep track of further developments.
