The local stock market experienced a sharp decline on Wednesday as sustained profit taking weighed on investor sentiment, according to Philstar Biz. The selloff came ahead of the Bangko Sentral ng Pilipinas (BSP) policy meeting, where analysts widely expect an interest rate hike.
The Philippine Stock Exchange index (PSEi) fell on concerns that a rate increase could slow economic growth and dampen corporate earnings. Traders locked in gains from a recent rally, with most sectors ending in negative territory amid cautious trading.
The BSP’s Monetary Board is scheduled to meet to review policy settings, with the majority of economists forecasting a 25-basis-point hike to curb inflation. The central bank has maintained a tightening bias in recent months to support the peso and manage price pressures.