DOWNLOAD
Economy
2 MIN READ
Monthly Recap: Ending a rollercoaster year
Twin rate cuts by the Fed and BSP, accelerating inflation, and a weakening peso were the main economic headlines in the past month.
January 6, 2026
By Metrobank Research
By Metrobank Research
Access this content:
If you are an existing investor, log in first to your Metrobank Wealth Manager account.
If you wish to start your wealth journey with us, click the “How To Sign Up” button.
Here are the key economic events in December 2025 and what to look out for ahead.
Key points
- Both the Bangko Sentral ng Pilipinas (BSP) and the US Federal Reserve (Fed) ended the year with rate cuts, continuing their respective easing cycles.
- With inflation accelerating to 1.8% in December, full-year inflation in the Philippines settled at 1.7% in 2025, below the BSP’s target range of 2%-4%.
- Central bank easing and a weak growth sentiment weighed heavily on the peso this month, with USDPHP reaching a record high in December.
What now
- Looking to the year ahead, Metrobank still expects the Fed and BSP to continue their easing cycles in 2026.
- Negative investor sentiment is still likely to persist this year, with Metrobank forecasting USDPHP to settle at 60.8 by end-2026.
(Disclaimer: This
Read More Articles About: