PSEi, peso climb ahead of BSP policy meeting

Philippine stocks and the peso went up on Wednesday as investors prepared for the upcoming meeting of the Bangko Sentral ng Pilipinas (BSP), where officials will decide whether to keep cutting interest rates.

The main Philippine Stock Exchange index (PSEi) rose 26.22 points, or 0.41%, to 6,394.77, while the broader All Shares index added 14.76 points, or 0.42%, to 3,542.05.

Most sectoral gauges advanced, except for industrials, which fell 65.32 points, or 0.72%, to 9,023.44.

Total volume reached 942.3 million shares worth P5.17 billion. Advancers outnumbered decliners, 101 to 93, while 63 issues were unchanged.

“The PSEi ended higher as bargain hunters stepped in following three consecutive days of decline. Investors appeared to position themselves ahead of the BSP policy rate decision tomorrow,” said Luis Limlingan, head of sales at Regina Capital Development Corp., in a mobile message.

The BSP’s Monetary Board is scheduled to meet Thursday afternoon to determine whether prevailing economic conditions warrant adjustments to key policy rates.

At its December meeting, the board delivered a 25-basis-point cut, bringing the target reverse repurchase rate to 4.50%—its lowest level since September 2022.

BSP Governor Eli Remolona earlier signaled that the easing cycle may be nearing its end, with any further reductions likely to be limited and data-dependent.

The peso also strengthened, gaining 12.5 centavos to close at P57.861 against the US dollar, compared with Tuesday’s P57.986 finish.

There was no trading on Tuesday, Feb. 17, due to the Chinese New Year holiday.

“The peso exchange rate posted net appreciation versus the US dollar after the BSP reiterated that its monetary easing cycle is nearing the end amid still-benign inflation data,” said Michael Ricafort, chief economist at Rizal Commercial Banking Corp.

Inflation accelerated to 2.0% in January—an 11-month high—driven mainly by higher housing and utility costs.

This was faster than the 1.8% recorded in December 2025 but slower than the 2.9% logged in January 2025.—MCG, GMA Integrated News