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Overseas news
The US trade deficit narrowed by 10.9% month-on-month, reaching $52.8 billion in September. Specifically, exports jumped 3% to $289.3 billion, faster than the 0.6% rise in imports to $342.1 billion.
A trade deficit is what happens when a country imports more than it exports in a certain period. This isn’t necessarily a bad thing, especially if it reflects strong domestic demand.
Further, the US Federal Reserve (the Fed) cut its policy rate by 0.25% to finish in the 3.5%-3.75% range. It also signaled only one cut in 2026 as divisions persist over inflation, jobs, and the impact of US President Trump’s policies.
Finding a policy rate that supports the labor market without causing a spike in inflation is a challenging task faced by most central banks like the Fed.
Local developments
Similarly, the Bangko Sentral ng Pilipinas (BSP) reduced its benchmark policy rate by 0.25% to land on 4.5%, the lowest since September 2022.
Meanwhile, the Asian Development Bank (ADB) has approved a $500-million policy-based loan to the Philippines. This is intended to support ocean-based economies and improve resilience of coastal areas.
International financial bodies such as the ADB are a potential source of funds for governments, in addition to local entities and investors.
In addition, the Philippine Statistics Authority (PSA) said the country’s domestic material extraction, covering biomass, metal ores, non-metallic minerals, and fossil fuels, rose 8.1% in 2024. The total was equivalent to 388.07 million metric tons.
This mix of news doesn’t hint at big changes happening soon. Avoiding big portfolio decisions might be the right thing to do for now.
