Philippine Peso Firms, BSP Minutes Reveal Policymakers Saw 2022 Growth Robust

Spot USD/PHP trades -0.056 at PHP56.313 as we type, with topside technical focus fixed on the all-time high of PHP56.500. Bears would be pleased by a sell-off past the PHP56.000 mark.

• USD/PHP 1-month NDF last seen -0.070 at PHP56.460. Bulls look to a rally towards historic highs of PHP56.740, while bears keep an eye on Jun 28 low of PHP54.740.
• The minutes from Bangko Sentral ng Pilipinas' most recent regular monetary policy meeting showed that policymakers assessed that "full-year growth forecast for 2022 remains robust, with a slight downward revision due to the slower world GDP outlook." The Monetary Board delivered a 25bp rate hike, which it said would "facilitate a gradual and well-considered pace for policy adjustment." The meeting was held on June 23, before the BSP raised its key policy rate by 75bp in an off-cycle move on July 14.
• Lawmaker Joey Salceda renewed his calls to give President Marcos special powers to tackle rising inflation. Salceda noted that his proposal was endorsed by the incoming House Speaker (who will be elected on Monday) and "hopefully will be discussed in the State of the Nation Address." Marcos will deliver his first SONA on Monday.