Interest rate cuts may slightly weaken peso

The further interest rate cuts anticipated from the Bangko Sentral ng Pilipinas (BSP) may slightly weaken the peso to beyond the mid-P56 level this year, according to consensus forecasts collected by the Barcelona-based FocusEconomics.

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In its June 2025 consensus forecast report for the Philippines, a copy of which was obtained by Manila Bulletin last week, FocusEconomics said the peso is expected to close the year at P56.73:$1.

"The peso should depreciate from current levels by the end of this year as monetary policy easing continues," FocusEconomics said. The peso is currently trading at the P55:$1 level.

"That said, a strong domestic economy will lead to a year-on-year appreciation of the Philippine peso," it added, as the peso settled at the P57:$1 level last year.