Manny Ocampo
The Bangko Sentral ng Pilipinas’ (BSP) unexpected decision to trim policy rates by 25 basis points to 4.75 percent has sparked optimism among business leaders, who view the move as a timely boost for private sector growth amid fiscal tightening and lingering market uncertainty.
Investment & Capital Corporation of the Philippines (ICCP) President and COO Manny Ocampo described the rate adjustment as both positive and proactive, saying it could pave the way for more affordable credit and renewed business expansion.
“Lending rates should start to ease, which will make credit cheaper over the next few months,” Ocampo said. “That’s very encouraging for companies planning to expand their operations or invest in new ventures.”
While the BSP cited a softer demand outlook as part of its rationale, Ocampo noted that the move also signals confidence in the private sector’s ability to sustain the country’s growth momentum. “By cutting rates, the BSP is effectively saying that it’s time for the private sector to take the lead in driving consumption and investment, especially with the government’s limited fiscal space,” he explained.
Despite short-term market jitters, Ocampo maintained a cautiously optimistic view of the Philippine Stock Exchange Index (PSEi). “Markets don’t like uncertainty, but once the dust settles, investors will start focusing on companies with strong fundamentals and long-term growth prospects,” he said.
Looking ahead, he forecasted the index to recover to the 6,300–6,400 range within six months, buoyed by “pretty decent” corporate earnings in the third and fourth quarters. “We’re not yet looking at a recession,” he assured.
Ocampo acknowledged the local market’s sluggish performance over the past decade but emphasized that opportunities remain. “There are still bright spots worth looking at,” he said. “This could be the reset that brings investors back into play.”
