PH Shares Plummet Amid BSP Hint to Hike Interest Rates

Bangko Sentral ng Pilipinas (BSP) hinted that it may continue hiking interest rates as the inflation rate of the country continues to skyrocket, which caused losses in the Philippine Stock Exchange Index (PSEi) on Friday.

This comes as the PSEi plummeted by 70.30 points, equivalent to 1.07 percent, to a total of 6,496.50.

Moreover, the All Shares index also stumbled to 3,400.13 after falling by 30.76 points, or 0.9 percent.

The indication of possible interest rate hikes also negatively affected multiple industries also fell, as shares of mining and oil fell by 2.24 percent, property by 1.9 percent, holding companies by 0.86, and financials, which fell by 0.65 percent.

Only industrial stocks were spared, rising by 0.13 percent.

The plummeting of shares came as BSP Governor Felipe Medalla said during an interview with Bloomberg that the central bank may increase interest rates in the following months.

Moreover, BSP said that the inflation situation in the country will remain dire in 2023 as it increased the inflation rate forecast for 2023 to 4.5 percent, which is up from the previous forecast of 4.3 percent. (GFB)