# ‘Policy rate can’t correct structurally-weak peso’

> Former Philippine central bank deputy governor Diwa Guinigundo said the recent 50-basis-point rate increase was primarily a response to inflation, not an effort to defend a specific peso exchange rate. He argued that addressing the peso’s structural vulnerability requires stronger exports, productivity, investment, and domestic agriculture and manufacturing, alongside lower logistics and energy costs.

- Date: 2026-11-07 · published 2026-11-07T21:11:06.106Z
- Category: macro · region Philippines · magnitude low
- Page: https://feedsoft.ai/events/86539-policy-rate-can-t-correct-structurally-weak-peso
- Commodities: [Philippine Peso (PHP per USD)](https://feedsoft.ai/c/USDPHP.md)

## Why it matters

The commentary points to persistent structural pressure on the peso rather than a currency problem that higher interest rates alone can resolve. A weaker peso could raise the local cost of imported feed and agricultural inputs.

## Sources

- businessmirror.com.ph: https://businessmirror.com.ph/2026/11/04/policy-rate-cant-correct-structurally-weak-peso/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.