‘BSP may cut rate to blunt fiscal fallout’ By Andrea E. San Juan
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OFT inflation and clarity over rice policy may pump up the confidence of the Bangko Sentral ng Pilipinas (BSP) to cut its policy rate in December to “partially offset” the country’s fiscal fallout caused by a slump in public infrastructure spending, according to the Hongkong and Shanghai Banking Corporation Limited (HSBC). “All in all, we think October inflation plus the clarity over rice policies strengthen the case for a December rate cut by the BSP,” HSBC Asean Economist Aris Dacanay said on Wednesday. “With no issues in inflation,
TINO’S AFTERMATH Rescue and retrieval operations continue in storm ‘Tino’-ravaged Cebu province, especially in Cebu City, where 19 individuals remain missing. Two others were reported missing in Danao City. In all, 93 people have been reported dead across Cebu province, 42 of them children under 2 years old. The Cebu provincial government has placed the province under a state of calamity. Stories in A3 Nation and A12, Second Front page. PHOTO COURTESY OF BFP CEBU CITY
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monetary policy has the runway to pump the economy to, hopefully, offset the fiscal fallout brought by a sharp drop in public infrastructure spending,” added Dacanay. HSBC said this is in line with its baseline view of a 25-bp policy rate cut to 4.50 percent by year end. On Wednesday, the Philippine Statistics Authority (PSA) announced that the country’s inflation remained unchanged in October at 1.7 percent. The figure was lower than the 2.3 percent inflation recorded in the same month last year, bringing the year-to-date average from January to October to 1.7 percent. The October 2025 inflation rate is within the BSP’s forecast range
of 1.4 to 2.2 percent.
BSP’s projection
MEANWHILE, BSP said in a statement on Wednesday that inflation is projected to average below the low end of the target range in 2025, “primarily due to the easing of rice prices in previous months.” “The outlook for inflation is generally benign, remaining well within the target range over the policy horizon,” BSP said. BSP said inflation expectations also remain “well-anchored.” This, even as it took into account that potential electricity rate adjustments and possible increases in tariffs on rice imports could add some “upward pressures.”
“Nonetheless, the risks to the inflation outlook are limited as price pressures are expected to ease amid stabilizing global commodity prices,” said BSP. The Monetary Board also took note of the weakening domestic economic growth, which it said reflects in part the “impact” on business confidence of governance concerns about public infrastructure spending. “Indications of slowing demand also reflect lingering uncertainty from the external environment,” BSP said. Moving forward, the Monetary Board said it will continue to review newly available information See “BSP,” A2
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Thursday, November 6, 2025 Vol. 21 No. 29
P25.00 nationwide | 2 sections 20 pages | 7 DAYS A WEEK
By Bless Aubrey Ogerio @blessogerio
ESPITE recent typhoons, the country’s inflation is expected to remain largely steady in the coming months, with weather-related price surges expected to be mild and short-lived, economists said.
The Philippine Statistics Authority (PSA) reported on Wednesday that inflation held at 1.7 percent in October, unchanged from September and below the 2.3 percent recorded a year ago. The year-to-date average from January to October also stands at 1.7 percent. Ateneo economist Leonardo Lanzona said that the economic slowdown is keeping a lid on price growth. “The decreased aggregate demand is creating a downward pressure on prices,” Lanzona told BusinessMirror. “While there may be some supply dislocation due to weather disturbance, the supply chain eventually recovers. The impact will be temporary.” Recent typhoons have taken a toll on communities, particularly Cebu, where the latest casualty count show 93 deaths, including 42 children below 2 years old, as of November 4.
For Luis Dumlao, fellow Ateneo economist, inflation remains comfortably below the central bank’s target range of 2 to 4 percent. “The three goods with the biggest weight in the CPI are housing rent, transport, and rice,” Dumlao said. “Rent has been relatively flat. Global crude oil prices are still down year on year, which keeps transport costs in check. Rice prices are still deflating,” he told this newspaper. Yet, while prices are currently stable, Reyes Tacandong & Co. senior adviser Jonathan Ravelas said there could be modest upward pressure as supply chains recover. “The steady 1.7-percent inflation shows the economy is in a sweet spot—prices are stable, but spending remains soft,” he said. “However, recent typhoons could shake things up. Expect food and transport costs to rise in the next few months as supply chains recover.” See “Price,” A2
RISING TOWERS, FALLING STOCKS High-rise office towers dominate the skyline of the Ortigas Business Center in Pasig on Wednesday, 5 November 2025. Meanwhile, the Philippines’ equities
market is facing a sobering milestone: the Philippine Stock Exchange Index (PSEi) has slid about 20 percent over the past decade, making it the worst-performing major benchmark globally, according to a Bloomberg L.P. report. In contrast, Asia-Pacific stocks rose roughly 72 percent and Jakarta Composite Index surged some 82 percent in the same period. See John Mangun’s column, “PSE: ‘So what’ and ‘who cares?’” in Op-Ed, page A10. NONOY LACZA
French investors interested MVP HOPES TO FIND YOUNG LEADER TO TAKE HELM AT PLDT in PHL despite corruption By Lorenz S. Marasigan
P SKY-HIGH ACCOUNTABILITY Public Works and Highways Secretary Vince Dizon and
Philippine Space Agency Officer-in-Charge Gay Jane P. Perez, Ph.D. (center), signed a Memorandum of Agreement on November 3, 2025, at the DPWH Central Office in Manila to utilize satellite data for infrastructure monitoring. They were joined by DPWH Undersecretary Ricardo P. Bernabe III (leftmost) and PhilSA Deputy Director General Denis F. Villorente (rightmost). The partnership aims to promote accountability, efficiency, and innovation across government by using satellite imagery and space-based analytics to track and assess infrastructure projects nationwide. Under the agreement, PhilSA will provide DPWH with satellite data from its archives, open access sources, and commercial subscriptions to monitor and validate infrastructure progress from space. Both agencies are developing advanced monitoring tools that integrate satellite remote sensing, artificial intelligence, and geospatial analytics. “By doing this, we empower citizens to see progress on the ground from the vantage point of space,” Perez said, highlighting the collaboration’s goal of advancing space-enabled governance for national development. PHILSA
LDT Inc. is looking to bring in younger, possibly external leadership to helm Smart Communications Inc., with chairman and CEO Manuel V. Pangilinan expressing a preference for a Gen Z or millennial executive to lead the wireless unit into the future. “I wish it were a Gen Z or a younger fellow or even a millennial. The future belongs to them. PLDT has got to shift in that direction,” Pangilinan said in an interview on the sidelines of the SmartSafe launch on Tuesday. Smart is currently navigating a transition period following the resignation of COO nastacio “Boy” R. Martirez, who stepped down on October 21 after going on leave amid employee complaints over workplace culture. Currently, Pangilinan said, Smart is “being run by a duo”—FVP for Strategy and
Corporate Brand Lloyd Dennis R. Manaloto and FVP for Marketing Marjorie C. Garrovillo. While addressing the leadership question, Pangilinan also expressed optimism about the group’s recent financial performance, noting that PLDT’s third-quarter results showed improvement over the previous two quarters. Revenues, he said, were up across both home and enterprise segments, with contributions from Maya, the group’s fintech arm, though slightly tempered by the “delinking from gaming sites.” On Wednesday, the PLDT Group unveiled SmartSafe, its first innovation from a suite of digital solutions that aim to become “the everyday guardian of digital safety.” SmartSafe is the country’s first telcoenabled fraud management application programming interface (API) suite certified by global mobile industry body GSMA. See “Leader,” A2
By Andrea E. San Juan
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HE French government’s interest to invest in the Philippines has not wavered despite the corruption issues hounding the Southeast Asian country, but has pointed out the need to put in place “robust safeguards” to ensure transparency in the implementation of projects. During the briefing on the 11th Philippines-France Joint Economic Committee Meeting, Allan B. Gepty, Undersecretary for the Department of Trade and Industry’s (DTI) Bureau of International Trade Relations, said the bilateral trade relationship between France and the Philippines remains strong despite the local corruption issues, given the European country’s interest to explore a “wide range of sectors” in the Philippines.
“Corruption is a problem that is not unique to the Philippines. It is a problem that every country, every economy faces and wherever you are, we have to address corruption because that’s a serious concern that we have to be vigilant in combating this problem,” the Philippine Trade official said. For his part, Magali Cesana, Head of Bilateral Affairs, French Treasury, said France is optimistic on the Philippines’ business climate despite the corruption mess but stressed the need to put in place “safeguards” to ensure transparency in the process of implementing projects. “It’s a question we discussed. And of course, the French companies, like other companies, have to be secured when they make investments. And to create a sound business climate business [to make] the Philippine territory [attractive], it’s See “Investors,” A2
PESO EXCHANGE RATES n US 58.6820 n JAPAN 0.3818 n UK 76.4392 n HK 7.5483 n CHINA 8.2303 n SINGAPORE 44.8845 n AUSTRALIA 38.0787 n EU 67.3845 n KOREA 0.0407 n SAUDI ARABIA 15.6477 Source: BSP (November 5, 2025)