Prøve GULL - Gratis
BSP cuts expected to drive peso lower
Manila Bulletin
|October 13, 2025
Japanese financial giant MUFG Bank, Ltd, now sees the Philippine peso weakening at a deeper level, as the sudden shift in the Bangko Sentral ng Pilipinas’ (BSP) tone has also made the market more expectant of about two additional cuts.
-
“We now pencil in the BSP cutting rates to 4.25 percent by the second quarter of 2026, which is one additional rate cut relative to what we were previously expecting,” said Michael Wan, senior currency analyst at MUFG Global Markets Research. Wan also switched to this rate as his expected terminal rate.
HSBC ASEAN economist Aris Dacanay has also adjusted his slower-paced easing outlook to more aggressive, but relative to Wan, Dacanay sounds less dovish.
“Given the dovish remarks by the BSP [last week], we adjust our policy rate forecast and expect a faster easing cycle from before,” Dacanay said. He previously expected the BSP to resume easing after a cut to 4.75 percent in early 2026, but now sees it taking place as early as December.
Dacanay anticipates the key lending rate to stay at 4.5 percent through 2026 and 2027.
Apart from a more dovish outlook for the key policy rate, Wan also said in a commentary published last Friday, Oct. 10, that the central bank could continue to reduce its reserve ratio requirement (RRR) from the current five percent to four percent early next year.
Wan noted that further easing in both the key borrowing costs and RRR would mean less support for the local currency.
Denne historien er fra October 13, 2025-utgaven av Manila Bulletin.
Abonner på Magzter GOLD for å få tilgang til tusenvis av kuraterte premiumhistorier og over 9000 magasiner og aviser.
Allerede abonnent? Logg på
FLERE HISTORIER FRA Manila Bulletin
Manila Bulletin
Up to 13% of low-, mid-rise buildings may collapse in 'Big One' – DOST chief
Low and mid-rise buildings in Metro Manila are the most vulnerable to collapse if the long-feared “Big One” strikes, with simulation estimates showing that up to 13 percent of such structures could be heavily damaged or may collapse during intensity 8 shaking along the West Valley Fault, Department of Science and Technology (DOST) Secretary Renato U. Solidum Jr said on Thursday, March 5.
3 mins
March 6, 2026
Manila Bulletin
Diesel price may increase by P16 per liter next week
Motorists face one of the largest weekly fuel price increases on record as escalating military conflict in the Middle East disrupts global supply chains and sends regional benchmarks soaring.
3 mins
March 6, 2026
Manila Bulletin
Women who lead
In my media career, now spanning 23 years, I have been fortunate enough to be mentored by some of the brightest editors and leaders in the industry.
2 mins
March 6, 2026
Manila Bulletin
Beauty, your way
From skincare to fragrance, five Filipinas show how they express confidence and personality through beauty, highlighted at Rustan’s Beauty Source’s GRLPWR: Beyond the Frame
2 mins
March 6, 2026
Manila Bulletin
Philippines launches gas auction
To lessen the strain and reduce dependence on coal-fired power plants, the Department of Energy (DOE) is set to launch the first centralized auction for mid-merit natural gas to stabilize the country's power grid.
1 mins
March 6, 2026
Manila Bulletin
P2-billion fund to help OFWs start businesses
Collateral requirements for P5-M loan or less waived
2 mins
March 6, 2026
Manila Bulletin
Philtrust Bank embarks on major digital upgrade
Philtrust Bank has entered into a strategic partnership with Infrasoft Technologies Pte. Ltd., a leading provider of digital banking and financial technology solutions, to implement a new core banking system and introduce advanced digital and mobile banking platforms.
1 min
March 6, 2026
Manila Bulletin
Korean President Lee reunites with Filipino worker he once helped
South Korean President Lee Jae Myung had a reunion with a Filipino worker he had helped as a human rights lawyer back in 1992.
2 mins
March 6, 2026
Manila Bulletin
February inflation rises to 1-year high of 2.4%
The year-on-year rate of increase in prices of basic goods and services rose to a one-year high of 2.4 percent in February, mainly on the back of faster food price hikes.
1 min
March 6, 2026
Manila Bulletin
House justice panel serves notice to Veep
The House Committee on Justice on Thursday morning, March 5, formally served a notice directing Vice President Sara Duterte to respond to two verified impeachment complaints that the panel had earlier found to be sufficient in form and in substance.
1 mins
March 6, 2026
Listen
Translate
Change font size
