BENGALURU: The Philippine peso rose further while stocks held firm, after the central bank left interest rates unchanged on Thursday in a surprise decision.
The Bangko Sentral ng Pilipinas (BSP) held rates steady at 5.75% and said the central bank would consider holding them in the next meeting as well.
The BSP was widely anticipated to deliver a quarter-point rate cut given the country’s disappointing economic growth over the last two years.
The peso, which was up 0.1% before the decision, rose further and was last up 0.3%.
“We are seeing the peso gaining on the back of BSP holding rates today and due to an improvement in regional sentiment,” said Lloyd Chan, senior currency analyst at MUFG Bank.
“The BSP has been conveying to markets that it will take a measured approach to monetary easing and today’s pause is essentially reflecting that message by the bank.”
BSP Governor Eli Remolona said they were not quite comfortable in evaluating the impact of global uncertainties developed over recent changes in trade policies.
The benchmark stock index held onto its early gains after the BSP decision and was last up 1.1%, led by a 10.7% jump in Jollibee Foods.
Jollibee rose the most since October 2020, after the stock exchange approved the removal of a 40% cap on foreign ownership in the fast-food chain.
Among other currencies, the Thai baht emerged as the major gainer.
Thailand is a major trading hub for gold, and the metal’s gains over the past week on concerns of a major global trade war helped offset currency volatility fuelled by US President Donald Trump’s tariff plans.
Comments
Comments are closed for this article.