Peso Weakens as New BSP Governor Named

The video discusses recent events impacting the Philippine peso, including the surprise nomination of Benjamin Diokno as the new central bank governor. The market was expecting a deputy governor to be appointed, leading to uncertainty about future monetary policy. Diokno's past as a budget secretary suggests a growth-oriented approach, potentially favoring a dovish stance. Inflation in the Philippines has decreased, reaching 3% year-over-year, within the central bank's target range. This has led to speculation about possible rate cuts, although some officials caution it may be premature. The market is now considering the timing of potential rate cuts and their impact on the peso.

Who was unexpectedly nominated as the new central bank governor by President Duterte?

• A former central bank governor

• The finance minister

• Benjamin Diokno

• A deputy governor

What was the recent inflation rate in the Philippines that surprised the market?

• 3% year over year

• 4% year over year

• 2% year over year

• 5% year over year

What is the central bank's target range for inflation?

• 2% to 4%

• 4% to 6%

• 3% to 5%

• 1% to 3%

What did one of the deputy governors say about the possibility of rate cuts?

• Rate cuts will happen next year

• Rate cuts are definitely happening soon

• It is too early to discuss rate cuts

• Rate cuts are not on the table

What is the market's current expectation regarding the timing of rate cuts?

• Rate cuts are expected later this year or next year

• Rate cuts are expected immediately

• Rate cuts are not expected at all

• Rate cuts are expected in two years