Investors cautious before BSP meeting in the Philippines

Investors are feeling cautious this week as they await key decisions from the Bangko Sentral ng Pilipinas (BSP). The local stock market has been affected by recent trade policies and changes in monetary policy in the United States. Wendy Estacio-Cruz, a research head at Unicapital Securities Inc., noted that traders will be closely watching the BSP’s upcoming rate-setting meeting, scheduled for April 3. She believes the BSP will likely keep interest rates steady while keeping an eye on inflation trends. March's inflation report will be released on April 4, adding to the anticipation. Last week, the Philippine Stock Exchange Index (PSEi) fluctuated between 6,200 and 6,300 points. Anxiety over U.S. President Donald Trump’s policies and the Federal Reserve's decision to maintain interest rates at 4.5 percent contributed to this uncertainty. The Federal Reserve's announcement to potentially cut rates twice this year has raised concerns about a possible recession in the U.S. As a result, the PSEi closed at 6,266.75 on Friday, down by 0.43 percent from the previous week. Cruz predicts that the PSEi will continue to range between 6,000 and 6,300 this week due to these factors.