The local stock market ended the week in the negative territory following the Bangko Sentral ng Pilipinas’s latest rate hike, according to Philstar Biz.
The BSP raised its benchmark interest rate by 25 basis points to 7.25 percent, its first rate hike in months, as it continues to combat inflation. The decision was widely expected by analysts, but the market reacted negatively, with the PSEi index falling by 1.2 percent to close at 6,500 points.
Investors remain cautious amid uncertainty over the pace of future rate increases. The BSP has signaled that it may tighten further if inflation pressures persist, which could weigh on corporate earnings and stock valuations.