Dominguez admits US v China to hurt PH especially with Trump’s new tariff hikes
Finance Secretary Sonny Dominguez after US President Donald Trump
announced another round of retaliatory tariffs on Chinese goods, which
he attributed to Chinese officials failure to make good on their
“Definitely this action will tend to increase the economic headwinds
we are already facing,” Dominguez said.
The US government slapped additional 10 percent duties on another $300
billion worth of Chinese goods effective September 1, 2019.
Trump said Chinese officials have agreed to buy US agricultural
products in hefty quantities but have not done it.
The additional taxes were announced after the US earlier required 25
percent duties on $250 billion worth of Chinese imports.
Dominguez said the impact of this new development “will be the subject
of our next Economic Development Cluster Meeting.”
He, however, did not say the date of the meeting.
Dominguez said this was among the factors to be considered by the
Bangko Sentral ng Pilipinas’ (BSP) on further cuts in interest rates.
Dominguez sits at the seven-man policy-making Monetary Board (MB) as
“Latest moves of the US will be part of the analysis,” he added.
Last May, the MB slashed the BSP’s key policy rates by 25 basis points
after noting the continued deceleration of domestic inflation and
continued domestic growth despite a slow start this year. This was
supposedly due to the delay in this year’s national budget.
Analysts forecast the MB to start cutting rates again after inflation
returned to its downward path last June, which it posted a slower rate
of 2.7 percent after an uptick to 3.2 percent last May from the
previous month’s three percent.
The BSP’s average inflation projection for this year is 2.7 percent.