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UK plans tougher laws to protect public services from cyberattacks

REUTERS

LONDON — Britain plans to strengthen its public services’ defenses against cyberattacks, requiring companies that provide services to private and public sector organizations such as the National Health Service (NHS) to meet strict security standards.

In 2024, hackers breached the Ministry of Defense’s payroll system and other recent attacks included one that disrupted over 11,000 NHS medical appointments and procedures.

The proposals also follow a series of cyberattacks in recent months that disrupted some of Britain’s biggest brands, including Marks & Spencer, the Co-op, and Jaguar Land Rover.

Under the proposed laws, medium and large companies providing services such as IT management, help desk support, and cybersecurity to both private and public sector organizations would be regulated, the government said in a statement on Wednesday.

“Because they hold trusted access across government, critical national infrastructure and business networks, they will need to meet clear security duties,” the Department for Science, Innovation and Technology (DSIT) said.

If approved, the proposals would require companies to promptly report significant or potentially significant cyber incidents to both the government and their customers, and to have robust plans in place to manage the conse-quences.

Regulators would gain new powers to designate critical suppliers to essential services, and there would be tougher penalties for serious breaches, the DSIT said.

The government has also set out plans to ban public sector bodies and operators of critical national infrastructure, including the NHS, local councils and schools, from paying ransom demands to cybercriminals. — Reuters

Twenty hurt in South Korea after truck crashes into market, officials say

STOCK PHOTO | Image by Vitamin from Pixabay

SEOUL — A light truck crashed into a market in South Korea on Thursday and sped for 150 meters (164.04 yards) before coming to a halt, injuring 20 people including two who were unconscious after suffering cardiac arrest, emer-gency officials said.

The incident took place at a market located in Bucheon, about 20 km (12.43 miles) west of the capital of Seoul, a fire official told a televised briefing.

The truck appeared to reverse for 28 meters before accelerating towards the outdoor market, the official said.

The driver had blamed a sudden surge of acceleration for the incident, he said.

The driver was not intoxicated when tested for alcohol by police, a police official said at the briefing.

Authorities would hand the vehicle over to investigators to try to pinpoint the cause of the crash, the official said. — Reuters

Two dead, 18 hurt in South Korea after truck crashes into market, media reports say

Image by manu zoli from Pixabay

SEOUL — A light truck crashed into a market in South Korea on Thursday, ploughing 150 meters along a passageway lined with stalls before coming to a halt, killing two people and injuring 18, according to emergency officials and media reports.

The incident took place at a market located in Bucheon, about 20 kilometers west of the capital Seoul, a fire official told a televised briefing.

Two people who had suffered cardiac arrest were later confirmed to have died, the Yonhap News Agency said.

The truck appeared to reverse for 28 meters before accelerating towards the outdoor market, the fire official said.

The driver had blamed a sudden surge of acceleration for the incident, he said.

The driver was not intoxicated when tested for alcohol, a police official said at the briefing.

Authorities would hand the vehicle over to investigators to try to determine the cause of the crash, the official said.

CCTV footage aired on Korean television showed shoppers going about their business at an outdoor market before a blue truck accelerated along a passageway lined by stalls and crashed into one of the stores.

Police had arrested the driver who was in his 60s and he was being questioned, Yonhap said. — Reuters

SMDC to mount its biggest home and investment celebration yet at SM Mall of Asia Music Hall

SM Development Corporation (SMDC) is set to host this year’s biggest lifestyle and property showcase, the SMDC Good Life Expo 2025, happening on Nov. 21 to 23 at the SM Mall of Asia Music Hall.

Bringing together homebuyers, investors, and lifestyle enthusiasts, the three-day celebration will feature exclusive property deals, on-the-spot home-loan pre-qualification from BDO and Chinabank, curated home-styling packages from SMDC’s home-furnishing partners, as well as live performances from top artists, and grand raffle prizes.

“Homeownership should be both attainable and meaningful,” said Jessica Bianca Sy, Vice-President for Design, Innovation, and Strategy at SMDC. “Through the SMDC Good Life Expo, we’re showing how every Filipino can find a home that fits their goals — whether that’s building a future in the city, living closer to nature, or starting a family in a nurturing community.”

Guests can explore immersive augmented reality setups to visualize their future homes, strike a pose at glam bots and themed photo areas, and join games to win exciting prizes, including limited-edition Good Life Expo merchandise and SM Gift Certificates. Visitors can also enjoy an interactive music setup, an eco market, and indulge in complimentary premium coffee, fresh wellness juices, or ice cream throughout the weekend.

The entertainment lineup will feature some of the country’s most beloved artists, with Martin Nievera performing on Friday, Dilaw on Saturday, and Hale closing the celebration on Sunday, alongside other guest performers and musical acts throughout the three-day event.

The Expo will highlight SMDC’s newest residential segments — SMDC Heights, SMDC Nature, and SMDC Symphony Homes — each offering a distinct way of living. Guests can explore these through immersive lifestyle zones that reflect the brand’s commitment to creating accessible, sustainable, and life-centered communities.

Set at the iconic SM Mall of Asia, the Expo combines SMDC’s signature flair for innovation with its mission to make good living possible for more Filipinos.

Scan to register

Mark your calendars for the year’s biggest home and investment celebration. Discover your dream home — and the life that comes with it — at the SMDC Good Life Expo, happening Nov. 21-23, 2025, at the SM Mall of Asia Music Hall.

For more information, visit www.smdc.com or follow @TheOfficialSMDC on social media.

Learn more at www.smdc.com.

 


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Marcos vows to ramp up gov’t spending in Q4

President Ferdinand R. Marcos Jr. leads the launching of Oplan Kontra Baha – Greater Metro Manila Waterways Clearing and Cleaning Operations held at Balihatar Creek, Barangay San Dionisio, Parañaque City, on Nov. 12, 2025. Photo by NOEL PABALATE, THE PHILIPPINE STAR

Philippine President Ferdinand R. Marcos, Jr. on Thursday pledged to ramp up government spending in the fourth quarter, as a corruption scandal contributed to weaker-than-expected growth in the third quarter.

“We have implemented many measures because public spending will now be increased to make sure that by the end of the year, the spending levels are aligned with our original plan — so we can recover what was lost in the third quarter,” Mr. Marcos said in mixed English and Filipino during a press briefing in Malacañang.

The Department of Budget and Management (DBM) earlier said it has programmed P1.31 trillion for disbursement during the October to December period to boost economic growth.

In the third quarter, Philippine gross domestic product (GDP) growth slowed to a four-year low of 4% from the 5.5% expansion in the second quarter and 5.2% a year ago. The sharp economic slowdown was mainly attributed to the corruption mess that dampened government spending and affected consumer and investor confidence.

For the first nine months of the year, GDP growth averaged 5%, slower than 5.9% in the same period last year, and below the government’s 5.5-6.5% full-year target.

The government is probing a multibillion-peso corruption scandal involving public works projects, where government officials allegedly colluded with private contractors to inflate costs and approve ghost infrastructure.

The scandal has also affected investor confidence on the Philippines, weighing on the stock market and the Philippine peso.

The Philippine peso weakened to a new record low of P59.17 per US dollar on Wednesday.

However, Mr. Marcos said the slowdown in economic activity is also partly due to a string of typhoons that led to work suspensions.

“There really was a downturn in economic activity. You have to remember that it’s not only because of these problems. Because of the typhoons, we lost working days in the economy,” he said.

Mr. Marcos also attributed the slower growth to the trade uncertainties, which are also affecting the global economy.

“We are not the only ones suffering the shocks that come from the new trade structure that has been imposed on the rest of the world. And so, we are all adjusting to that,” he added.

Since Aug. 7, the US has imposed a 19% duty on many goods from the Philippines, Cambodia, Malaysia, Thailand and Indonesia. — Chloe Mari A. Hufana

Geomagnetic storm grounds launch of Mars space weather satellites

STOCK PHOTO | Image by GooKingSword from Pixabay

A GEOMAGNETIC storm on Earth triggered by a large burst of solar radiation has temporarily grounded a Blue Origin rocket carrying twin NASA satellites built to measure space weather on Mars.

Blue Origin says its giant New Glenn rocket stands ready for liftoff on what would be the first major NASA-scale science mission that Jeff Bezos’ space venture has ever undertaken for a paying customer. It also would be the company’s first launch of any kind since its inaugural New Glenn flight in January.

“However, due to highly elevated solar activity and its potential effects on the EscaPADE spacecraft, NASA is postponing launch until space weather conditions improve,” the company said on its website on Wednesday.

New Glenn, a two-stage, heavy-lift rocket 32 stories tall, had been slated for blastoff on Sunday from the US Space Force Station in Cape Canaveral, Florida, carrying two Mars-bound EscaPADE satellites in its payload bay. But the flight ended up scrubbed for the day because of heavy cloud cover.

The mission had been rescheduled for Wednesday, but Blue Origin indefinitely called off the launch again after alerts for a severe geomagnetic storm were posted by the US Space Weather Prediction Center. The storm was unleashed by a surge in high-energy charged particles spewed into space from large eruptions on the sun’s surface called “coronal mass ejections.”

The resulting stream of charged-particle radiation, or plasma, was measured on Earth on Wednesday at G-4, or “severe” levels, one step down from the highest stage of G-5 or “extreme.” The geomagnetic storm was forecast to persist at severe strength on Thursday.

Geomagnetic storms are known to disrupt radio and satellite communications. They also can increase atmospheric density, creating intense friction or drag on satellites and other spacecraft in low-Earth orbit, as occurred in February 2022 when 40 Starlink satellites newly launched by SpaceX were disabled.

Elevated levels of charged particles from the sun can also more easily escape Earth’s protective magnetic field and collide more vigorously with molecules in the atmosphere, heightening the extent of colorful aurora displays visible in the night skies, mostly in polar regions.

The vibrant green and pink displays of Northern Lights, or Aurora Borealis, were reported across unusually large swaths of the United States on Tuesday night as far south as Texas, Florida and Alabama, with another round of higher-latitude appearances forecast for Wednesday.

Ironically, the twin satellites of EscaPADE, short for Escape and Plasma Acceleration and Dynamics Explorers, are intended to study similar phenomena on Mars at the end of a 22-month voyage to the Red Planet.

The two spacecraft, dubbed Blue and Gold, are designed to orbit Mars in tandem to analyze how streams of charged solar particles interact with Mars’ relatively weak magnetic field and how that interaction has caused the planet to lose much of its atmosphere over billions of years. — Reuters

 

France marks 10th anniversary of deadly Paris attacks

FRENCH PRESIDENT EMMANUEL MACRON — REUTERS

PARIS — France marks the 10th anniversary on Thursday of attacks in Paris in which Islamic State gunmen and suicide bombers killed 130 people in a rampage through cafes, restaurants and the Bataclan concert hall, and many survivors are still traumatized.

The attacks were the deadliest on French soil since World War Two, scarring the national psyche and prompting emergency security measures, many of which are now embedded in law.

The assault began with suicide bomb blasts outside the Stade de France sports stadium where then-President Francois Hollande and the German foreign minister were watching a friendly soccer international, and continued with gunmen opening fire at five other locations in central Paris.

Starting at 11:30 a.m.(1030 GMT), President Emmanuel Macron will join officials, survivors and relatives of victims paying tribute to those killed and wounded in the attacks. The memorial events begin at the Stade de France and move on to the restaurants and cafés that were attacked, as well as the Bataclan.

ATTACK ON THE BATACLAN
Sebastian Lascoux was inside the Bataclan where the rock band Eagles of Death Metal were playing when what he thought was the noise from firecrackers pierced the concert hall. It quickly became apparent that the venue was under attack.

People “ended up all squashed together and collapsed as one,” he recalled. “And then (there was) the smell of blood,” said Mr. Lascoux, now aged 46. One of his friends was shot dead trying to shield another member of their party.

“He saved her life,” added Mr. Lascoux, who still suffers from post-traumatic stress and cannot be in crowded places or enclosed spaces, even cinemas. Loud pops remind him of gunshots.

Like some other survivors, Mr. Lascoux plans to attend Thursday’s commemorations.

“What made the November 13 attacks unique was that everyone was a potential victim,” historian Denis Peschanski said.

“Either they were old enough to be there, or, like me, they were old enough to have children who could have been there, even though I was lucky they weren’t.”

‘LIFE GOES ON’
Catherine Bertrand, a survivor of the Bataclan attack, and vice-president of a victims’ association, said: “We all agree that it has marked us forever. We are all deeply traumatized by that evening, and our thoughts of course turn to the victims and their loved ones.”

She stressed that life must go on, though, saying: “There are concerts at the Bataclan, life goes on, we meet up between friends” at the places where the attacks took place.

Ten years on, the threat of such attacks in France is different. Militant jihadist groups such as Islamic State no longer have the same means to coordinate attacks on French soil, security sources say.

But the group’s online propaganda is still effective and able to radicalize youngsters fascinated with violence on social media. Anti-terrorism prosecutors this week launched a probe into the former partner of the presumed sole surviving perpetrator of the attacks.— Reuters

US House takes step toward ending longest government shutdown in history

A US flag is draped at Union Station with the US Capitol dome in the background in Washington, DC, US, June 28. — REUTERS/KEN CEDENO

WASHINGTON — The House of Representatives took a procedural step toward ending the longest government shutdown in US history on Wednesday, advancing a stopgap funding package to restart disrupted food assistance, pay hundreds of thousands of federal workers and revive a hobbled air-traffic control system.

The Republican-controlled chamber voted 213-209 to move towards a final vote on the measure, with President Donald Trump’s support largely keeping his party together in the face of vehement opposition from House Democrats, who are angry that a long standoff launched by their Senate colleagues failed to secure a deal to extend federal health insurance subsidies.

Eight Senate Democrats on Monday broke with party leadership to pass the funding package, which would extend funding through January 30, leaving the federal government on a path to keep adding about $1.8 trillion a year to its $38 trillion in debt.

“I feel like I just lived a Seinfeld episode. We just spent 40 days and I still don’t know what the plotline was,” said Republican Representative David Schweikert of Arizona, referring to a popular 1990s US sitcom.

“I really thought this would be like 48 hours: people will have their piece, they’ll get a moment to have a temper tantrum, and we’ll get back to work.”

He added: “What’s happened now when rage is policy?”

House Democrats remain adamantly opposed, angered by the Senate deal that came less than a week after Democrats won high-profile elections in New Jersey, Virginia and New York City that many thought strengthened their odds of winning an extension of health insurance subsidies. While the deal sets up a December vote on those subsidies in the Senate, Speaker Mike Johnson has made no such promise in the House.

Democratic Representative Mikie Sherrill, who last week was elected as New Jersey’s next governor, spoke against the funding bill in her last speech on the US House floor before resigning from Congress next week, encouraging her colleagues to stand up to Mr. Trump’s administration.

“To my colleagues: do not let this body become a ceremonial red stamp from an administration that takes food away from children and rips away healthcare,” Ms. Sherrill said.

“To the country: stand strong. As we say in the Navy, don’t give up the ship.”

NO CLEAR WINNER FROM SHUTDOWN
Despite the recriminations, neither party appears to have won a clear victory. A Reuters/Ipsos poll released on Wednesday found that 50% of Americans blamed Republicans, while 47% blamed Democrats.

A final vote on passage is expected later on Wednesday. If approved by the House, the funding package would have to be signed into law by Mr. Trump. The White House said he supports the bill.

The vote came on the Republican-controlled House’s first day in session since mid-September, a long recess intended to put pressure on Democrats in the shutdown standoff. The chamber’s return also set the clock ticking on a vote to release all unclassified records related to the late convicted sex offender Jeffrey Epstein, something Mr. Johnson and Mr. Trump have resisted up to now.

Mr. Johnson on Wednesday swore in Democrat Adelita Grijalva, who won a September special election to fill the Arizona seat of her late father, Raul Grijalva. She provided the final signature needed for a petition to force a House vote on the issue, hours after House Democrats released a new batch of Epstein documents.

That means that after performing its constitutionally mandated duty of keeping the government funded, the House could once again be consumed by a probe into Mr. Trump’s former friend whose life and 2019 death in prison have spawned countless conspiracy theories.

The funding package would allow eight Republican senators to seek hundreds of thousands of dollars in damages for alleged privacy violations stemming from the federal investigation of the January 6, 2021, attack on the US Capitol by Mr. Trump’s supporters.

It retroactively makes it illegal in most cases to obtain a senator’s phone data without disclosure and allows those whose records were obtained to sue the Justice Department for $500,000 in damages, along with attorneys’ fees and other costs. — Reuters

First Michelin Guide for the Philippines has 9 Michelin-starred restaurants

The Michelin Guide Manila and Environs & Cebu 2026, the first such guide for the Philippines, lists nine Michelin-starred restaurants.

A total of 108 establishments are listed in the guide, varying in distinction from Michelin Guide Selected Restaurants, Bib Gourmand Awards, and Michelin Stars.

Related story: https://www.bworldonline.com/arts-and-leisure/2025/11/02/709365/a-few-words-from-a-double-starred-chef/

Video editing by Richard Mendoza

Marcos appoints Charlito Mendoza as new BIR chief; Lumagui out

UNDER Republic Act No. 11976 or the Ease of Paying Taxes Act, taxes may be filed and paid anywhere, whether manually or electronically. — PHILIPPINE STAR/RUSSELL PALMA

President Ferdinand R. Marcos, Jr. appointed Finance Undersecretary Charlito Martin R. Mendoza as the new Bureau of Internal Revenue (BIR) Commissioner, replacing Romeo D. Lumagui, Jr.
In a Viber chat to reporters, acting Press Secretary Dave M. Gomez confirmed the change within the agency but did not elaborate further.

Mr. Mendoza’s appointment was signed on Wednesday.

He used to head the Finance Department’s Revenue Operations Group, working closely with the BIR and the Bureau of Customs (BoC).

Mr. Lumagui was a BIR deputy commissioner when the President’s term started in 2022, but was promoted as BIR chief in November 2022 or four months after Mr. Marcos took his seat.

The new BIR chief’s appointment comes as Mr. Lumagui earlier said it may fall short of its P3.219-trillion collection target for 2025 due to several emerging headwinds.

“The overall performance is low… so there’s a need to recalibrate or recalculate the entire goal,” BIR Commissioner Romeo D. Lumagui, Jr. told BusinessWorld in an interview in mixed English and Filipino on Nov. 11. “As things stand, it’s going to be quite difficult.”

The latest Treasury data showed that BIR collections jumped by 10.88% to P2.32 trillion in the first nine months of the year. However, this was 2.63% lower than the programmed P2.38 trillion for the January-to-September period.

The BIR, the main revenue collection agency, needs to collect around P897 billion to reach the P3.219-trillion full-year program. — Chloe Mari A. Hufana

Peso slumps to new all-time low

By Aaron Michael C. Sy, Reporter

THE PESO fell to a new all-time low against the dollar on Wednesday as the dollar was buoyed by hopes of the US government reopening, while the local unit was dragged by expectations of slower growth.

The local unit closed at P59.17 versus the greenback, sliding by 18.5 centavos from its P58.985 finish on Tuesday, Bankers Association of the Philippines data showed.

This surpassed the previous record of P59.13 against the US dollar on Oct. 28.

Year to date, the peso has depreciated by P1.325 or 2.24% from its P57.845 finish on Dec. 27, 2024.

The peso opened Wednesday’s session slightly stronger at P58.95 versus the dollar. It logged an intraday best of P58.91, while its worst showing was at P59.19 against the greenback.

Dollars exchanged rose to $1.72 billion on Wednesday from $1.47 billion on Tuesday.

The dollar was generally stronger on Wednesday amid market optimism on the possible end of the US government shutdown, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“The peso weakened further after the US Senate successfully endorsed a temporary spending bill which will fund the US government until Jan. 30, 2026,” a trader said in a Viber message.

The US House of Representatives was scheduled on Wednesday to vote on a funding plan for government agencies to end the longest shutdown in US history, following the Senate’s approval of a compromise on Monday.

Dollar demand was also supported by expectations that the US Federal Reserve will keep rates higher for longer, Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said in a Viber message

The Fed last month cut rates by 25 basis points (bps) to bring its target rate to the 3.75%-4% range.

However, expectations of a rate cut at the Fed’s Dec. 17-18 meeting have dwindled after Fed Chair Jerome H. Powell questioned its necessity, while other officials remained divided over its last policy decision for the year.

“The combination of sluggish exports, slower government spending, and declining foreign direct investments (FDI) has reduced foreign currency supply just as import needs remain high,” Mr. Rivera added.

The local unit was also dragged by weak sentiment as damage from recent typhoons could further weaken economic activity, another trader said by telephone.

“Locally, market confidence is also being tested by governance issues and slower growth, which makes investors more cautious,” Mr. Rivera added.

In the third quarter, the Philippine economy grew by 4%, its slowest pace in over four years amid a slowdown in household and government spending. This as a widening flood control scandal dampened investor and consumer sentiment.

In the nine months to September, GDP growth averaged 5%, putting the government’s 5.5%-6.5% full-year growth target further out of reach.

Mr. Rivera said the peso could remain within the P59 to P60 per dollar range unless stronger dollar inflows are seen from remittances, tourism, or exports.

“In the coming months, stabilization will depend on faster fiscal disbursements, stronger FDI signals, and clear policy actions that restore both investor and market confidence,” he said.

The first trader said the peso could depreciate further on Thursday if the US government shutdown is resolved.

The first trader sees the peso moving between P59 and P59.25 per dollar, while the second trader sees it ranging from P59 to P59.30 on Thursday.

Mr. Ricafort sees the local unit trading between P59.05 and P59.25 on Thursday.

Philippines may take 70 years to catch up with Singapore

High-rise buildings dominate the skyline of Makati City’s central business district. — PHILIPPINE STAR/RYAN BALDEMOR

The Philippine economy is at risk of further falling behind its Southeast Asian neighbors, an economist said, noting it may take two years to catch up with Vietnam and up to 70 years to catch up with Singapore.

“(T)he Philippines could find itself lagging behind if alleged public spending issues continue to divert attention and resources away from the structural reforms needed to accelerate economic development,” Bank of the Philippine Islands (BPI) Lead Economist Emilio S. Neri, Jr. said in a commentary on Wednesday.

In the third quarter, Philippine gross domestic product (GDP) grew by 4%, its slowest pace in over four years amid slower household and public infrastructure spending as the flood control scandal dampened investor and con-sumer sentiment.

In the nine months to September, GDP growth averaged 5%, putting the government’s 5.5%-6.5% full-year growth target further out of reach.

“The Philippine economy is growing, but not enough to close the economic gap with other countries,” Mr. Neri said.

He noted the Philippine GDP per capita is lower compared with other economies in the region. Citing International Monetary Fund (IMF) data, he said the Philippines’ GDP per capita stood at $4,078 in 2024.

“At the current growth rate, it would take the Philippines two years to catch up with the GDP per capita of Vietnam, 4 years with Indonesia, 14 years with Thailand, 26 years with Malaysia, and 70 years with Singapore, assuming their incomes remain stagnant. In reality, their GDP per capita continues to grow, which means the gap could persist or even widen,” Mr. Neri said.

The Philippines lagged behind Singapore which had a GDP per capita of $90,674 in 2024, followed by South Korea ($36,128), Japan ($32,498), China ($13,312), Malaysia ($12,540), Thailand ($7,491), Indonesia ($4,958) and Vietnam ($4,535).

“Before the pandemic, the Philippines had a higher GDP per capita than Vietnam, but has since been overtaken. At current trends, it would take the Philippines two years to catch up with Vietnam, but that gap could increase to 13 years by 2044,” Mr. Neri said.

The BPI economist said the Philippines needs structural reforms to accelerate growth in order to close the widening gap with its neighbors.

“The current economic model of the country is not enough, as shown by the country’s inability to grow faster than 6% in recent years,” he said.

Mr. Neri said the economy has been “too reliant” on consumer spending, driven by overseas Filipino worker (OFW) remittances and the business process outsourcing industry.

“There is a need to diversify its sources of growth. The economy must improve in terms of production, especially in agriculture and manufacturing, as they will allow the economy to be more self-sufficient and to reach foreign markets. These industries have been critical to Vietnam’s success and could play a similar role for the Philippines,” he said.

However, Mr. Neri said implementing these reforms will be hard if the government lacks focus.

“Public spending issues divert fiscal resources and policymaking focus away from long-term development priorities. Efforts to strengthen safeguards against potential issues in government spending are essential, enabling the country to work on structural reforms that could improve the economy,” he said.

Mr. Neri said the Philippines will likely depend on monetary policy to sustain economic growth, with the Bangko Sentral ng Pilipinas (BSP) expected to continue rate cuts until mid-2026.

“Excessive rate cuts could lead to an overshoot, as monetary policy might be used disproportionately to compensate for weaker growth performance,” he said.

“While inflation is expected to remain manageable in the coming months, there is a significant chance it will move higher in 2026 as favorable base effects from rice prices fade. If the BSP cuts its rates too much and inflationary pressures suddenly rise, the central bank could be forced to reverse course abruptly, hiking rates faster than the ideal pace,” Mr. Neri added.

In October, the BSP trimmed the key policy rate by 25 basis points (bps) to a three-year low of 4.75%, citing benign inflation and downbeat business sentiment amid the flood control mess. It has now slashed borrowing costs by a total of 175 bps since it began its easing cycle in August 2024.

BSP Governor Eli M. Remolona, Jr. has also hinted at potentially two more 25-bp cuts at the Monetary Board’s last meeting this year on Dec. 11 and by early next year to support the economy.

MORE DOVISH?

Meanwhile, the BSP could deliver more interest rate cuts than expected as fiscal tightening due to the flood control scandal dampened economic growth, Nomura Global Markets Research said.

In its latest Global Economic Outlook Monthly, Nomura said the substantial impact of the graft scandal could prompt the BSP to lower borrowing costs by over 50 bps until next year.

“The inadvertent fiscal tightening due to the ongoing corruption controversy is substantial, hurting short-run growth prospects materially and keeping BSP dovish for longer,” Nomura research analysts Euben Paracuelles and Yiru Chen said.

They noted that a sharper global growth slowdown and a slower resolution of the corruption controversy pose downside risks to growth.

GlobalSource Partners Country Analyst Diwa C. Guinigundo said the latest growth print and stable inflation should support the monetary authorities’ dovish stance.

“This clear growth deceleration, coupled with steady headline inflation at 1.7% in both September and October, strengthens the case for the Bangko Sentral ng Pilipinas to sustain a monetary accommodation stance through late 2025 and possibly into early 2026,” Mr. Guinigundo said in a note dated Nov. 11.

Headline inflation steadied month on month at 1.7% in October, but eased from 2.3% a year ago. This brought the 10-month inflation to average 1.7%, matching the BSP’s full-year forecast.

“Seasonal holiday spending and remittance-driven demand could nudge prices up, but any uptick may be tempered by available monetary policy space — possibly leaving room for another rate cut,” Mr. Guinigundo said.

However, Nomura said emerging risks could push the BSP to reduce interest rates more than it has indicated.

“BSP sounded more dovish and signaled that it sees scope for a more accommodative stance, citing the need to support domestic demand after the corruption scandal was exposed,” Mr. Paracuelles and Ms. Chen said.

Meanwhile, Mr. Guinigundo said growing political instability, weak stock market and peso, as well as declining foreign investments complicate the BSP’s policy path.

Mr. Guinigundo noted that “premature or excessive” monetary policy easing could lead to capital outflows and further weaken the local currency.

“In this environment, a measured pause in policy rates could send a constructive signal — that the BSP remains data-driven, vigilant, and risk-conscious, choosing to balance growth support with the need to preserve macroeconomic credibility and market confidence,” he added. — KKC

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