Overseas news
Israel struck Iranian nuclear facilities on Thursday. This prompted Iran to retaliate with missile and drone attacks, including one that hit an Israeli hospital.
Relatedly, US President Donald Trump said he will decide within 2 weeks whether the US will intervene in the Israel-Iran conflict. He urged Tehran toward negotiations within the period.
The escalating week-long conflict shows no signs of de-escalation, causing uncertainty over the price of oil.
Local developments
The Bangko Sentral ng Pilipinas (BSP) cut its key interest rate by 0.25% to reach 5.25%, the lowest in over 2 years. This is the BSP’s second consecutive rate reduction and there were hints at least 1 more cut this year to bolster the economy.
The key rate affects many financial matters both directly and indirectly, including loan rates, bond prices, and the stock market. That’s why any changes to it are of concern to investors.
The Philippine Exporters Confederation, Inc. said the country could still meet its export target under the Philippine Development Plan (PDP) if it maintains its competitive edge. However, the Philippine Export Development Plan (PEDP) goal is likely out of reach.
The PDP aims to raise job creation and reduce poverty by leading the economy on a high-growth path. To achieve this, it targets deep economic and social transformation.
The PEDP, on the other hand, is a roadmap designed to develop and position the Philippines and its exporters as an agile export powerhouse in key industries. It is aligned with the PDP.
Meanwhile, the World Bank urged the Philippines to make fiscal reforms and rebuild its financial buffers. These were said to better allow withstanding of economic shocks amid projections of below-target growth in the coming years.
Such steps are among the methods available for a country to prepare should its economy not perform as well as it should.
Despite the growing unease from the current Middle East situation, there is no certainty that things will go in a certain direction. For now, it might be better to refrain from big decisions while staying updated.
