BSP set for rate decision, PSEi down 1.92%

Investors remained cautious on Monday as the Bangko Sentral ng Pilipinas (BSP) prepared for its interest rate-setting meeting.

The Philippine Stock Exchange Index (PSEi) ended down 1.92 percent at 6,037.12 points by market close.

Foreign investors were net sellers, with outflows totaling P438.19 million.

Property firms and banks experienced the steepest declines, with stocks of major companies like BDO Unibank Inc., Bank of the Philippine Islands, and Ayala Land Inc. dropping significantly.

Analysts expect a 25 basis point rate cut by the Monetary Board on Thursday, bringing the overnight borrowing rate to 5.5 percent.

Some analysts believe it might be premature to lower rates given the ongoing trade tensions in the West.