The week ahead
This week is going to start quietly and then get a little weird on Tuesday when we hear from the Philippine Statistics Authority on our Consumer Price Index (CPI) reading for May. This is the data that we use to calculate inflation. Tuesday is also the ex-date for CREIT’s Q1 cash dividend. Then we have nothing until Friday, which is the ex-date for FILRT’s Q1 cash dividend.
MB BOTTOM-LINE
The BSP was initially full of bravado when it first hit the pause button last month, but it seemed to quickly walk back comments that it would pause for several periods in a row to say that it would still probably just follow what the US was doing. If the CPI data comes in hot (surprisingly high), then the BSP might be relatively quiet, but if the CPI data comes in cool (surprisingly low), then we might get another round of chest-beating about our ability to remain independent of the US on interest rate hikes and continue our pause.
I don’t know which way it will go, only that the CPI data itself isn’t coming down that much on a month-to-month basis; the inflation “gains” that we might see could be low-base effects from the alarming acceleration of inflation that started this time last year.
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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
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