Asia Week Ahead: Philippine Rate Decision And Singapore, China, Taiwan Data

The Philippine central bank is expected to hike rates by 25bp to counter persistent inflation risks.

The Philippine central bank is expected to hike rates by 25bp, while data highlights include Singapore inflation, China industrial profits, and Taiwan industrial production.

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Philippines: BSP expected to hike rates by 25bp

We continue to expect the Bangko Sentral ng Pilipinas (BSP) to deliver a 25bp rate hike on Thursday, despite recent moderation in headline inflation. While CPI prints in June and July offer some reassurance that prices have peaked, underlying pressures remain elevated. Yet the central bank remains cautious for several reasons, including a recovery in Brent oil prices, food inflation remaining vulnerable to supply-side shocks and recently announced wage increases.

Singapore: Inflation set to accelerate in July

July CPI inflation is expected to accelerate sharply, driven by electricity tariff adjustments. The pass-through of higher utility costs is likely to extend to core inflation amid increased prices for retail goods and services.

China: Industrial profits recovery in focus

China releases its July industrial profits data on Thursday. Profits have seen a solid recovery this year as sectors such as computers, communications, and electronic equipment significantly outperform thanks to the tech boom. Coal mining and oil and gas extraction had strong first half profits growth as well amid higher energy prices.

Taiwan: Industrial production growth to remain strong

Taiwan releases its July industrial production data on Tuesday. We expect another strong month of growth, thanks to strong performance from the computers, electronic and optical products and semiconductor subcategories. We look for a 23.3% year-on-year increase, broadly stable from June’s growth rate.

Key events in Asia next week

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