18/04/2025
The Bangko Sentral ng Pilipinas (BSP) may start easing its stance in defending the peso by the second half of the year to allow exports to grow and the economy to expand, according to a research group.
In an analysis, HSBC Global Research said the BSP would likely consider bringing down its rate differential with the US Federal Reserve before the end of 2025 for growth purposes.
HSBC believes the BSP has to loosen its defense of the peso to raise exports value and improve the balance of payments to benefit the economy.
It said the Philippines is one of the economies safe from any tariff attack from the US, unlike countries like China and Mexico. As such, the BSP has room to trim the peso’s overvaluation by piling up on reserves when the local currency falls in the foreign exchange market.
