PSEi surges 2.46% on surprise BSP rate cut

The Philippine Stock Exchange index (PSEi) surged by 2.46% to close at 7,169.79 on Friday, driven by a surprise interest rate cut from the Bangko Sentral ng Pilipinas (BSP).

The BSP's Monetary Board reduced its benchmark rates by 25 basis points to new record lows of 2% for overnight reverse repurchase, 2.5% for lending, and 1.5% for deposit facilities.

This aggressive move by the central bank elicited an extremely positive reaction from investors, contributing to the PSEi's significant gain for the week.

The index has now marked three consecutive weeks of advances.

Investor optimism was also boosted by hopes that US lawmakers could pass a coronavirus stimulus package.