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The Philippine Stock Exchange index (PSEi) rose further on Wednesday, Sept. 17, on hopes that the Bangko Sentral ng Pilipinas (BSP) will slash rates further in tandem with the United States Federal Reserve (US Fed).
The main index jumped by 61.92 points, or 1.01 percent, to close at 6,210.66. The services sector led all indices in the advance. Volume grew to 7.48 billion shares worth ₱10.01 billion, as gainers outnumbered losers—104 to 83, with 59 unchanged.
“The market looks already positioning ahead of the Fed’s decision, with sentiment also shaped by Finance Secretary [Ralph] Recto’s recent remarks suggesting the BSP may cut rates if the Fed does,” said Regina Capital Development Corp. managing director Luis Limlingan.
He added that, “With inflation still within the target range, a Fed cut could be a key trigger for the BSP to ease further later this year.”
Philstocks Financial research manager Japhet Tantiangco said, “The local market extended its rise as hopes of another BSP rate cut lifted sentiment. This comes following Department of Finance (DOF) Secretary and Monetary Board (MB) Member Recto’s statement, saying that the BSP may still cut rates this year depending on the Fed’s move and the Philippines’ inflation rate.”
He noted that, “The decline in local yields and the strengthening of the peso also gave the market a boost.”
Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort said, “The PSEi corrected higher for the second straight day amid continuation of some bargain-hunting activities, shortly before the widely expected 0.25-percent Fed rate cut.
He added that the market is also pricing in even more Fed rate cuts into 2026 that could be matched locally.
Ricafort said Recto signaled that the BSP might cut rates by 0.25 percent each on the next BSP rate-setting meetings on Oct. 9, 2025, and on Dec. 11, 2025, as the markets priced in possible three 0.25-percent Fed rate cuts for 2025 amid softer US jobs and other economic data recently.
