• Hawkish Fed tone ‘positive for trade’

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    Bangko Sentral ng Pilipinas (BSP) said the hawkish tone of the US Federal Reserve in the minutes of its April meeting is a positive signal for global trade as well as for its trading partners like the Philippines.

    The Fed’s April minutes confirmed recent hawkish speeches of officials, showing that a June hike is likely if economy continues to improve.

    BSP Governor Amando Tetangco Jr. said the Fed affirmed its earlier posture that their next actions would be data dependent.

    “That they appear to now be more hawkish and thus less concerned about global economic slowdown is positive for global trade, especially for its trading partners including the Philippines,” Tetangco said in a text message to reporters on Thursday.

    In his assessment, the BSP chief said this supports the central bank’s current stance that there is no need at the moment for further stimulus to the economy.

    “We remain watchful of developments including shifts in market sentiment,” he added.
    In a related development, the peso weakened against the US dollar on Thursday.

    The currency lost 14 centavos to close at P46.80 to $1 from its P46.66 finish on Wednesday.

    The peso opened at P46.80 to $1 at the Philippine Dealing System before trading between P46.75 and P46.95. Total transactions rose to P764.8 million from P606.3 million previously.

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