BSP rate cut possible in first quarter

By Julito G. Rada

BANGKO Sentral ng Pilipinas Governor Felipe Medalla said Friday that an inflation rate below 3 percent will likely give monetary authorities a reason to cut interest rates by January or February 2024.

Medalla said in an interview on Bloomberg TV that waiting remained the “best strategy” at the moment.

“I suppose if we see inflation below 3 percent, by January or February we may cut. But we should be patient. We must be careful. Waiting is the best strategy

In Brief

PLDT eyeing 12th data center to boost capacity

THE PLDT Group, through ICT subsidiary ePLDT, said Friday it plans to build its 12th data center facility to boost its data center market capacity.

Victor Genuino, president and chief executive of ePLDT, said the company’s decision to build the 12th data center is anchored on customers’ needs and its aspirations of delivering digital innovation that would bring more business value to customers and result in inclusive economic growth.

It is also a part of ePLDT’s vision to boost the country’s regional competitiveness and bring much-needed investments, he said.

“We want to be able to help the Philippines be the next hyperscaler hub of Asia while continuing to support the digital transformation journey of different sectors locally,” Genuino said.

The 12th data center will have a power capacity of no less than 100 megawatts. It will further fortify PLDT Group’s data center market leadership in the Philippines while leveraging on the massive infrastructure investment of the country’s largest telecommunication group. Darwin

G. Amojelar

First Gen’s FSRU vessel arrives in Batangas Bay

FIRST Gen Corp. on Friday welcomed the arrival of BW Batangas, a floating storage and regasification unit (FSRU) which was chartered by wholly-owned subsidiary FGEN LNG Corp. as part of its interim offshore liquefied natural gas terminal project in Batangas Bay.

FGEN LNG and BW Group, the world’s largest gas shipping company, signed a charter agreement with respect to the BW Batangas in April 2021 to play a pivotal role in securing the country’s energy supply through the regasification of imported LNG to fuel the natural gas power plants at the First Gen Clean Energy Complex in Batangas.

BW Batangas, which was previously called the BW Paris, arrived on June 16. It can store 162,524 cubic meters of LNG and regasify up to 500 million standard cubic feet of gas per day to enable LNG to supplement the Malampaya gas reserves.

“First Gen chose to rename its FSRU as the BW Batangas because of the Lopez-led company’s desire to acknowledge the consistent support of the Province of Batangas, Batangas City, and the local government units, that host the FGCEC where it will be based,” the company said.

Alena Mae S. Flores

PRA to stage national retail confab in August

THE Philippine Retailers Association, the largest national organization of retailers, shopping centers and allied industries, is staging its groundbreaking flagship program—the National Retail Conference and Expo on Aug. 10 to 11 at the SMX Convention Center Manila. The 29th edition of NRCE with overarching theme “Retail Breakthrough,” will be the gateway for retailers and other industries to take a giant leap into a brighter and more promising future.

PRA president Rosemarie Bosch Ong said that as the entire footprint of retail is about to change, retailers should be ready to spread their wings, prepare to fly and take a quantum leap by embracing the forthcoming wave of discoveries, learning new skills and competencies by harnessing innovations and transformations, accompanied by a strong will to execute growth in retail breakthroughs.

“With that goal in mind, the 29th NRCE will provide powerful learning sessions from global captains and, at the same time, an avenue for unrivaled collaboration and high-level networking opportunities,” Ong said.

Back-to-back with its world-class conference is the only focused and dedicated retail suppliers’ exhibition in the Philippines - the Retail Solutions Asia, earlier known as the Stores Asia Expo.

now. The optimal waiting time is up to January or February [2024],” he said. Medalla said there was a need to watch the movements of other central banks, but local monetary authorities depend on domestic economic data such as inflation.

“We are confident that we have done enough.. Headline inflation [in May 2023] stood at 6.1 percent. Unless there are new ‘surprises,’ we expect inflation below 4 percent by October or November [2023],” he said.

“The [current] situation will last quite some time unless there is other data that says otherwise. Goods inflation is actually lower than 4 percent, but services inflation is higher than 4 percent. So there is little reason to raise and little reason to cut [interest] rates,” he said. Bank of the Philippine Islands lead economist Jun Neri said in an online briefing Friday that inflation in the Phil- ippines could be within the target range sooner than in the United States.

“The BSP may soon have the opening [to cut interest rates]. The BSP may do it gradually,” Neri said.

Neri said inflation would not only be the main consideration by monetary authorities when it comes to cutting interest rates. He said they were also looking at interest rate differentials.

“Based on the assessment of our research team, the best time to cut interest rates is early 2024,” Neri said.

The Monetary Board of the BSP on Thursday maintained the benchmark policy interest rate at 6.25 percent as ex- pected as inflation began to ease.

Medalla said the average inflation was projected to settle at 5.4 percent in 2023, slightly lower than a previous estimate of 5.5 percent. The BSP also forecasts an average inflation of 2.9 percent for 2024 and 3.2 percent for 2025.

Medalla said the balance of risks to the inflation outlook continued to lean towards the upside due to the potential impact of additional transport fare increases and minimum wage adjustments, persistent supply constraints of key food items, El Niño weather conditions and possible knock-on effects of higher toll rates on agricultural prices.

Repower pegs IPO price at P5 to raise P1.15b

By Jenniffer B. Austria

REPOWER Energy Development

Corp. pegged the final offer price for its planned initial public offering at P5 per share to raise P1.15 billion.

REDC president Eric Peter Roxas said in a letter to the Philippine Stock Exchange the company would sell 200 million primary common shares, with an over-allotment option for 30 million secondary shares.

The offer period is from June 28 to July 14, while listing on the main board of the PSE is on July 24.

EGG-CELLENCE. Pilmico Animal Nutrition Corp., part of the agribusiness subsidiary of the Aboitiz Group, as the first awardee in Asia of the ‘500 Egg Club Award’ at the Philippine Poultry Show and lldex Philippines 2023. Its hens produce 500 eggs each at the age of Week 100, as recognized by Hendrix Genetics. Pilmico is the first in the Philippines and Asia to accomplish this achievement. Receiving the award is Pilmico assistant vice president for poultry and swine grower-finisher operations Dr. Serge Tan (fourth from right).