June has been an eventful month – from shifts in global politics to big moves in local monetary policy. Here are some of the key things that happened:  

1. The Bangko Sentral ng Pilipinas (BSP) cut its key interest rate to 5.25%.
   The BSP has lowered rates for the second time this year, with the possibility of further cuts being considered. This points to a more supportive stance as inflation continues to ease. At the same time, it’s good to note that global tensions are being watched closely, as they may add uncertainty to the broader economic outlook
   
   
2. The peso weakened against the US dollar, depreciating more sharply than its regional peers.
   While this may sound alarming, this is mainly because more investors are buying US dollars, which are seen as a safe haven during times of global uncertainty—like the tensions in the Middle East. The BSP has said it won’t step in for now, as the exchange rate remains within acceptable levels.
   
   
3. Tensions between Israel and Iran escalated after a series of attacks, including Israel’s airstrike on Iran’s nuclear facilities.
   The conflict sparked concerns about a broader regional crisis, especially with the U.S. getting involved. While Philippine lawmakers and analysts warned of possible ripple effects—like fuel price hikes and market volatility—a reported ceasefire has helped ease fears of serious local impact. 

Why should you care? Because all of this – yes even something happening in the Middle East – can affect you.  

Here’s a breakdown of what this could mean for you: 

1. Lower interest rates help boost the economy and create more opportunities for everyone. When the BSP lowers rates, it’s a move to stimulate economic growth. That means making it easier and more affordable for businesses to borrow, invest, and expand. In turn, this can lead to more job opportunities and better income prospects for Filipinos. As people earn and spend more, businesses grow—and the cycle of growth continues, helping the economy stay healthy.
   
   
2. A weaker peso can raise prices. A weaker peso makes imports like fuel, food and even gadgets more expensive. On the other hand, it’s a win for those earning dollars and sending it to their loved ones here in the Philippines, or a win for those receiving remittances. With the BSP indicating no immediate plans for intervention, the peso’s current trend may continue—so it’s a good idea to plan your budget with that in mind.
   
   
3. Global tensions have a local impact. Israel’s strike on Iran may seem distant, but it can push oil prices up. And when fuel costs rise, so does everything else – for example, transportation will likely be more expensive. It’s a stark reminder: global news can hit close to home, especially your budget. 

While it’s true that the economy moves fast, a little know-how can help you stay one step ahead! 

A few quick money terms you should know: 

• Remittances – Money sent home by Filipinos working abroad; often affected by exchange rate movements. 

Want to understand more economic terms? Check our article with relevant definitions HERE.