It starts with a question

Everyday we are presented with questions.

From what to prioritize in our to-do list to what's for dinner, our mind is occupied with seeking answers. This week, our experts try to address some pressing questions to help you navigate the financial markets.

After Philippine policymakers lowered the ratio of funds banks are required to hold as reserves, will they resume interest-rate cuts? We outline the reasons behind a "yes" and "no."

We also answer whether China is ready for potential higher tariffs under Trump 2.0, and what could be the Philippines' inflation print this month.

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As always, happy weekend.

Metrobank Wealth Insights Team

BSP reaches into toolkit for another kind of cut

After hitting the pause button on rate reductions, the Bangko Sentral ng Pilipinas (BSP) announced it will lower the ratio of funds that banks and financial institutions are required to hold as reserves.

While that’s a win for banks, many may ask: what kind of policy move will follow?

Read more: BSP reaches into toolkit for another kind of cut

As China faces high tariff risk, less US reliance may soften its blow

US President Donald Trump’s second term could lead to another trade war between the US and China.

The world’s second-biggest economy has put in place preemptive measures to cushion the impact of possible higher tariffs as Trump returns to the oval office. But are those enough to stave off growth and price risks?

Read more: As China faces high tariff risk, less US reliance may soften its blow

Inflation Preview: Slowdown amid a foodfest?

Subdued rise in food costs offset oil- and electricity-price hikes this month, allowing inflation to remain well within the BSP’s target band.

The target-consistent prints seen in the last few months may be enough to nudge the BSP to resume its easing cycle by delivering a rate cut at the next Monetary Board meeting in April.

Read more: Inflation Preview: Slowdown amid a foodfest?

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