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BSP: Slow growth raises rate cut odds
The Philippine peso weakened to a near two-week low of P58.92 against the US dollar on Wednesday.
Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr. indicated that the country's economic growth might fall short of the government's target, potentially settling between 4% and 5% due to spending cuts and weak investor confidence.
This slower growth outlook, exacerbated by a corruption scandal, has increased the likelihood of another BSP interest rate cut in December, although it is not assured.
The peso's weakest point during trading was P58.925 against the dollar, with an intraday high of P58.50, and the volume of dollars traded increased to $1.41 billion.
The BSP has already implemented a total of 175 basis points in rate cuts since August 2024, with the benchmark interest rate currently at 4.75%.
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