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Philippines PMI manufacturing 50.9 in Jun-23

- The Philippines PMI manufacturing recorded a reading of 50.9 in June 2023, indicating a slowdown in the sector's expansion compared to the previous month's level of 52.2.
- June's PMI is the lowest observed level since July 2022, suggesting potential economic challenges in the manufacturing sector.

Bangko Sentral Ng Pilipinas: Jun-23

• The BSP has maintained its interest rates, reflecting a cautious stance amidst ongoing economic uncertainties and inflation pressures. Future decisions are likely to be influenced by observed responses to the recent tightening of monetary conditions.
• Inflation is anticipated to return gradually to the target range, with some risk of an upside due to potential increases in transport fares, minimum wages, and food supply constraints. This risk profile may necessitate further policy adjustment.
• The BSP stands ready to resume monetary tightening, underscoring its commitment to a data-driven approach. This illustrates the bank's willingness to pivot based on macroeconomic trends and its mandate to maintain price and financial stability.