Asian Stocks Surge as Oil Prices Fall and Strong US Dollar Weighs on Markets 
RBI Hits Pause as Geopolitical Storm Clouds Gather 
South Korea Signals Possible Interest Rate Hike as Inflation Remains Elevated 
Yen Near 40-Year Low as USD/JPY Approaches Key 162 Level, Raising Intervention Concerns 
Italy’s Economy Outpaces Eurozone Peers as Investment Spending Fuels Growth 
US Stock Futures Recover as Iran Signals Progress in Peace Talks 
BOJ Signals More Rate Hikes as Inflation Risks Rise Amid Energy Price Pressures 
China Keeps Loan Prime Rates Unchanged for 13th Straight Month as Policymakers Prioritize Credit Demand Recovery 
US Stock Futures Slip After Wall Street Rally Fueled by US-Iran Deal and Chipmaker Surge 
Jerome Powell Warns Against Politicizing the Federal Reserve, Defends Democratic Institutions 
Indonesia Passes New Central Bank Law, Raising Investor Concerns Over Policy Independence 
Oil Prices Fall as Iran Peace Talks Progress, Hormuz Reopens, and U.S. SPR Hits 1983 Low 
The Bangko Sentral ng Pilipinas (BSP) is expected to hold its monetary policy meeting on Thursday, August 10 and the decision will be released by 08:00 GMT. The fourth largest bank by market capitalization in Australia, ANZ Research said in its latest report that the Philippines central bank to keep its policy rate unchanged at 2.50 percent, 3.00 percent, and 3.50 percent at their interest rate setting meeting.
The bank note also mentioned that the headline inflation will likely stay anchored in the BSP’s 2-4 percent target range this year. However, the ANZ Research expects the BSP to keep a cautious tone in its policy statement. The knock-on effects on consumer prices of the tax reform, along with the pending upward adjustments to electricity rates, keep the risks to inflation tilted to the upside.
The research note added that the country’s credit growth continues to rise and net of reverse repurchase (RRPs) placements, commercial bank loans rose 19.0 percent y/y in June, maintaining their uptrend since mid-2015. Lending to the real estate sector continues to dominate the increase in lending.
Considering the easing of GDP growth to a more stable path and the deterioration of the current account into a deficit, the increasing credit intensity calls for monetary tightening in the foreseeable future. Lastly, the ANZ forecasts 25 basis points hike in the interest rate corridor by the end of the year.
Meanwhile, FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
