01. BSP Delivers Bigger Than Expected Interest Rate Hike as Inflation Risks Grow

The Bangko Sentral ng Pilipinas raised its benchmark interest rate by 50 basis points to 5.5% on October 22, a larger increase than financial markets had anticipated. The decision marked the fourth consecutive rate hike as policymakers sought to contain persistent inflationary pressures and prevent rising costs from spreading further throughout the economy.

The central bank cited risks associated with higher oil prices, the conflict in the Middle East and the expected effects of El Niño. The Philippines remains vulnerable to international energy prices because it imports a substantial share of its fuel requirements. A weaker peso can make these imports even more expensive.

The rate increase may help moderate inflation and stabilise expectations, but it also raises borrowing costs for households and businesses. Housing loans, business financing and other forms of credit may become more expensive, potentially weighing on consumer spending and investment.

The decision highlights the challenge facing policymakers as they attempt to contain inflation without placing excessive pressure on economic growth.

02. Supreme Court Strikes Down Major Provisions of the 2024, 2025 and 2026 National Budgets

The Supreme Court declared several major provisions of the national budgets for 2024, 2025 and 2026 unconstitutional in a decision released during the week. The ruling concerned congressional increases to unprogrammed appropriations, a special road fund and certain special accounts.

Among the amounts affected was a ₱449.5 billion increase in unprogrammed appropriations under the 2024 national budget. The Court also invalidated a ₱17.99 billion increase to the Department of Public Works and Highways Special Road Fund in the 2025 budget, as well as certain provisions involving the 2026 budget.

The Court explained that unprogrammed appropriations are not inherently unconstitutional, but they must be governed by clear standards and safeguards. It stressed that budgetary rules must preserve fiscal discipline, transparency and accountability while preventing spending arrangements that exceed constitutional limits.

The ruling has significant implications for public spending and the scrutiny of government funds, particularly as lawmakers examine the proposed ₱7.2 trillion national budget for 2027. The Marcos administration announced that it would ask the Supreme Court to reconsider parts of the decision.

03. GCash Parent Mynt Makes Historic Stock Market Debut

Mynt, the parent company of mobile wallet GCash, made its debut on the Philippine Stock Exchange on October 20 following the largest initial public offering in the exchange's history.

The company raised approximately ₱60.9 billion through its offering, with shares priced at ₱6.60 each. Its debut valued the fintech business at approximately ₱441.5 billion, or around US$7 billion. The listing attracted attention from domestic and international investors at a time when the Philippine market was facing currency weakness and wider economic uncertainty.

GCash has become a major part of everyday financial activity in the Philippines, allowing users to transfer money, pay bills and access savings, credit and other digital financial services. The public offering also gave ordinary Filipinos an opportunity to invest in a company whose services they already use.

The successful listing represents a milestone for the local capital market and could encourage other companies to consider raising funds through public offerings. However, its longer-term significance will depend on the company's financial performance, investor confidence and the broader economic environment.

04. Philippines and China Trade Diplomatic Protests Over Ambassador's Remarks

Relations between Manila and Beijing came under renewed strain following remarks by Chinese Ambassador Jing Quan suggesting that China could easily win a conflict if it chose to use force. Philippine officials described the comments as threatening and inconsistent with diplomatic conduct.

President Ferdinand Marcos Jr. said the remarks warranted a direct discussion with the ambassador. The Philippine government subsequently summoned Jing to express its objections, while the Chinese Embassy defended the ambassador's position and accused Philippine officials of misrepresenting his comments.

The dispute comes against the backdrop of continuing tensions over maritime claims and activities in the South China Sea, where the Philippines and China have repeatedly clashed over sovereignty and access to contested waters.

The diplomatic exchange has raised concerns about the potential for inflammatory public statements to worsen relations between the two countries. Manila continues to maintain that it will defend Philippine sovereignty while pursuing diplomatic avenues to address disputes.

The episode underscores the difficult balance the Philippines faces in maintaining diplomatic and economic relations with China while strengthening security partnerships with other countries.

05. Peso Extends Its Record-Low Run Against the US Dollar

The Philippine peso continued to weaken against the US dollar during the week, reflecting pressure from global energy prices, a strong dollar and concerns about the country's external financial position.

On October 21, the peso closed at ₱63.361 to the dollar, marking its 29th record-low closing level of the year. Analysts pointed to elevated oil prices, uncertainty in global markets and the country's widening balance-of-payments deficit as contributing factors.

Currency weakness has direct consequences for Filipino households and businesses. Imported fuel, food ingredients, machinery and other dollar-priced goods can become more expensive, adding pressure to domestic prices. Overseas Filipino workers may receive more pesos when converting dollar earnings, but the benefits can be offset if the cost of living rises.

The peso's continued depreciation also presents a challenge for policymakers as they attempt to contain inflation and maintain confidence in the economy. The BSP's larger interest rate increase was one of the week's major responses to the mounting inflation risks, although interest rate decisions alone cannot resolve the external pressures affecting the currency.

06. Government Sets Aside Billions for El Niño Response as Agricultural Losses Mount

The government intensified preparations for the expected effects of a very strong El Niño, with officials announcing additional measures to protect water supplies, agriculture and vulnerable communities.

The Philippine government set aside approximately ₱7.86 billion in disaster response funding for El Niño-related needs. Officials reported that agricultural damage had reached an estimated ₱6.87 billion, affecting around 223,000 farmers and fisherfolk.

Government agencies have begun distributing assistance, providing resilient seeds and crops, and procuring equipment intended to improve water availability for drinking and irrigation. Local governments may also use portions of their quick response funds to support affected communities.

The weather phenomenon is forecast to affect the country into the first half of 2027, raising concerns over reduced crop production, water shortages, higher food prices and increased electricity demand. These risks could compound the effects of inflation and a weakening peso.

The effectiveness of the response will depend on how quickly support reaches farmers and communities, whether water-management measures are implemented in time and how well national and local agencies coordinate their efforts.

07. Philippines Secures US$1.5 Billion in ADB Financing to Cushion Global Economic Shocks

The Philippines secured approximately US$1.5 billion in financing from the Asian Development Bank to help cushion the economic effects of the Middle East conflict and disruptions to global energy supplies.

The financing is intended to support the government's Assistance for Greater Resilience and Alleviation of Poverty programme. It will help fund measures designed to maintain fuel and electricity supplies, support transport affordability, provide targeted assistance to vulnerable sectors and assist overseas Filipino workers affected by economic disruptions.

The initiative reflects concerns that higher oil prices and instability in international energy markets could increase the cost of living and put pressure on businesses. The government is seeking to protect livelihoods while ensuring that essential services and economic activities can continue.

Although the financing provides additional resources, it also raises questions about how support will be targeted and how effectively the government can protect vulnerable households without adding unnecessary pressure to public finances.

The programme will be particularly important if global energy prices remain elevated and the effects of El Niño intensify in the coming months.

Three Other Major Philippine Headlines

08. Palace Orders Continued Crackdown on Illegal POGO Operations

Malacañang reaffirmed the government's commitment to eliminating illegal Philippine Offshore Gaming Operator activities after reports indicated that some operations were continuing despite the nationwide ban announced in 2024.

The Palace said law enforcement agencies would continue pursuing suspected illegal gaming operations and related criminal activities. Authorities have reported arrests connected to facilities allegedly involved in online scams, with operators suspected of changing their methods to evade detection.

Illegal POGO-linked activities have remained a public concern because investigations have associated some operations with online fraud, trafficking and other criminal offences. The government has maintained that its ban remains in force and that enforcement must continue.

The challenge for authorities is to identify operations that have shifted locations or structures, pursue the people responsible and prevent criminal networks from exploiting gaps in enforcement.

09. House Opens Probe Into ₱3.5 Billion Drug Shipment Linked to Laos

The House of Representatives began an inquiry into a major drug-smuggling case involving a reported ₱3.5 billion shipment linked to Laos. The investigation is intended to examine how the shipment was organised, the suspected trafficking network involved and the effectiveness of cooperation between Philippine and foreign law enforcement agencies.

The case has renewed attention on the international nature of illegal drug trafficking and the role of cross-border networks in moving narcotics through Southeast Asia. Investigators are expected to examine the circumstances surrounding the shipment, the identities of suspected organisers and possible gaps in intelligence and enforcement.

The inquiry comes as the government continues its broader campaign against organised crime, illegal online gaming operations and other activities that may involve transnational criminal groups.

The proceedings could provide further information about how the shipment was arranged and what measures may be needed to strengthen border controls and international cooperation. Allegations against individuals involved in the case remain subject to investigation and due process.

10. Typhoon Rosal (Champi) Approaches Northern Luzon Before Moving Away From the Philippines

Super Typhoon Rosal, internationally known as Champi, entered the Philippine Area of Responsibility on October 20 after strengthening over the Philippine Sea. The storm briefly became one of the most powerful tropical cyclones recorded globally in 2026, prompting PAGASA to raise Tropical Cyclone Wind Signals over parts of Northern Luzon, including Batanes and areas of Cagayan and Isabela. Authorities warned of strong winds, heavy rainfall and dangerous sea conditions, with waves reaching potentially hazardous heights along northern coastal areas. By October 23, Rosal had begun moving farther away from the Philippines and was forecast to weaken gradually, although wind signals remained in effect over Batanes and parts of the Babuyan Islands. Mariners were advised to avoid dangerous sea conditions, while residents in affected areas were urged to follow PAGASA bulletins and local safety instructions. 

Looking Ahead

The week of October 17 to 23 highlighted the close connection between the Philippines' economic, political and security challenges. The BSP's rate hike and the peso's continued weakness reflect the difficulty of controlling inflation amid global uncertainty, while the Supreme Court's budget ruling has renewed scrutiny of public spending and fiscal accountability.

Mynt's historic stock-market debut offered a positive development for the country's financial sector, even as the government sought additional funding to protect households from global energy disruptions and El Niño. Meanwhile, tensions with China and continuing investigations into organised crime reinforced the importance of diplomacy, law enforcement and public accountability.

In the coming weeks, attention is likely to remain on inflation, the peso, the implementation of El Niño assistance, the consequences of the Supreme Court's budget decision and the government's efforts to address cross-border security threats.