Economy2 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
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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 is general investment information only and does not constitute an offer or guarantee, with all investment decisions made at your own risk. The bank takes no responsibility for any potential losses.)
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