Philippine Peso Gains as BSP Signals End of Cuts

2025-12-11 07:38 By Kyrie Dichosa 1 min. read

The Philippine peso rose to around 59 per dollar, rebounding slightly from record lows, after the Bangko Sentral ng Pilipinas delivered an expected rate cut but signaled it could be the final move in the current easing cycle.

BSP Governor Eli Remolona said domestic demand is set for a gradual recovery, adding that any further easing would likely be limited and guided by incoming data.

The BSP has cut borrowing costs by 125 bps this year, providing support to consumption and investment.

However, a graft scandal involving billions earmarked for flood control projects has restrained state spending, which accounts for about 20% of GDP.

The central bank also highlighted a weakened domestic growth outlook, noting that business sentiment remains subdued amid governance concerns and ongoing global trade uncertainties.

Still, domestic demand is expected to recover gradually as the effects of monetary easing take hold and public spending improves in both pace and quality.



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