Stocks inch up on possible BSP rate cuts in 2027
The local stock market rose to mark the week’s open yesterday, taking a cue from a possible cut in interest rates by the Bangko Sentral ng Pilipinas next year to support growth.
The Philippine stock market opened on a positive note on Monday, buoyed by expectations of a possible rate cut by the Bangko Sentral ng Pilipinas (BSP) in 2027. The benchmark Philippine Stock Exchange index (PSEi) climbed 0.22 percent or 13.26 points to close at 6,075.07. The broader All Shares index also rose by 0.15 percent or 5.12 points, reaching 3,363.52.
Industry experts believe the news that the BSP might start easing monetary policy in 2027 has encouraged investors to buy shares. In its latest Monetary Policy Report, the central bank indicated that a low-inflation scenario could enable policy rate cuts and boost economic growth. While some policy tightening is still required in 2026 to curb high inflation, a potential rate reversal in 2027 is possible if economic conditions weaken.
The BSP has already increased interest rates by 75 basis points this year, resulting in a benchmark rate of 5 percent. However, the market still lacks a strong catalyst to drive sustained growth. Investors are expected to be cautious in trading for the remainder of the week due to the absence of a long-term peace deal in the Middle East.
According to data, a total of P5.70 billion worth of shares changed hands on Monday, with winners outpacing losers by a narrow margin of 96 to 95. Retail giant ICTSI led the trading volume, up 0.51 percent to trade at P990 per share.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
