Shares end flat as PH pauses rate hikes

MANILA  -The Philippine Stock Exchange index (PSEi) closed flat on Thursday as the Bangko Sentral ng Pilipinas (BSP) announced an expected pause in its monetary tightening cycle.

The PSEi slipped 0.1 percent, or 6.47 points, to 6,628.64 while the broader All Shares index added 0.02 percent, or 0.80 points, to 3,534.64.

The Monetary Board announced Thursday that the key policy rate would remain at 6.25 percent.

https://business.inquirer.net/401487/bsp-key-rate-stays-at-6-25

Bangko Sentral ng Pilipinas Governor Felipe Medalla said average inflation forecast this year eased to 5.5 percent, lower than the 6 percent forecast in February.

Trading activity was muted as 729.91 million shares valued at P3.96 billion changed hands. Foreigners were net sellers to the tune of P244.47 million.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said rate easing “could lower borrowing/financing costs for some listed companies.