In early November, the Philippine peso fell to over 59 per dollar, revisiting its record low as disappointing GDP figures bolstered arguments for further interest rate reductions. The economy experienced a significant slowdown in the third quarter, marking its weakest growth rate in over four years and falling short of expectations. This deceleration resulted from a public spending cutback driven by a corruption scandal and compounded by the financial strain caused by a series of typhoons and the subsequent state of calamity.
This economic performance reinforced the central bank's perspective that additional rate cuts might be necessary to bolster economic growth, following October's mild inflation report. Previously, in late October, the peso had reached a record low after the Bangko Sentral ng Pilipinas appeared more open to currency depreciation, in contrast to other Asian central banks, which took measures to support their currencies. The decline in the peso's value later moderated after Governor Eli Remolona dismissed rumors that the BSP was aiming for a specific exchange rate.
