Philippine peso may weaken to 60 per dollar in 2025, says Bank of America

The Philippine peso may weaken to 60 per dollar in 2025, according to Bank of America. This is due to the strong demand for the US dollar, especially after Donald Trump's recent election victory, which has raised concerns about global trade. Despite the expected depreciation, Bank of America believes inflation will remain within the Bangko Sentral ng Pilipinas' target of 2 to 4 percent. They anticipate that falling global oil prices will help offset any inflationary effects from the weaker peso. The Bangko Sentral ng Pilipinas has already cut interest rates this year and may continue to do so in 2025. They plan to hold additional rate cuts in March and June, similar to the US Federal Reserve's approach amid potential inflation from tariffs.