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BSP rate cuts squeeze bank margins 'til 2026

Manila Bulletin

|

July 10 2025

Expectations of as much as 100 basis points (bps) in interest rate cuts by the Bangko Sentral ng Pilipinas (BSP) next year would put more pressure on domestic banks’ margins, according to debt watcher S&P Global Ratings.

In a recent report, S&P Global forecast the BSP policy rate to drop further to four percent by end-2026, from a projected five percent by end-2025. This means that the credit ratings agency expects one more 25-bp rate cut by the BSP’s policy-setting Monetary Board before year-end, from the current 5.25-percent policy rate.

"In the Philippines, we expect rate cuts to happen more in 2026, and so the NIM [net interest margin] impact is expected to be more pronounced in 2026," S&P Global said.

FLERE HISTORIER FRA Manila Bulletin

Manila Bulletin

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Cargo ship capsizes; PH, China on mercy mission

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time to read

2 mins

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Manila Bulletin

Duterte camp assails ICC prosecutor for raising jurisdiction issue anew

Lawyers for former president Rodrigo Duterte have accused the International Criminal Court (ICC) prosecutors of trying to relitigate issues already settled by the court, warning that the latest filing on jurisdiction amounts to an improper attempt to get a \"second bite of the cherry\".

time to read

2 mins

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time to read

3 mins

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Manila Bulletin

Manila Bulletin

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time to read

4 mins

January 25, 2026

Manila Bulletin

Manila Bulletin

Scholarships for top SHS, TVET graduates nationwide launched

President Marcos launched on Friday.

time to read

3 mins

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Arraignment of Bong Revilla, 6 co-accused reset to Feb. 9

The arraignment of former senator Ramon “Bong” Revilla Jr. and six other accused in the non-bailable malversation of public funds and the graft charges, originally set for Jan. 23, were reset by the Sandiganbayan to Feb. 9.

time to read

1 mins

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Manila Bulletin

Manila Bulletin

Villar City helps shape a sustainable future for Metro South

There's no doubt that Metro South is on the cusp of growth.

time to read

3 mins

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Lea Salonga breaks silence on split: Finding joy after Robert Chien

Filipino Broadway superstar Lea Salonga admitted she has been separated from her former husband, Robert Chien, but said they are supportive of their son, Nic Chien.

time to read

2 mins

January 25, 2026

Manila Bulletin

The next growth frontiers

As the real estate industry steps into the next quarter-century, 2026 stands as a defining moment that calls for sharper foresight and bolder strategies. For this property outlook, we turn to industry leaders to weigh in on a central question: Which emerging markets and development models will shape the next wave of real estate expansion in 2026 and beyond? These insights help frame a forward-looking view of how capital, innovation, sustainability, and evolving urban needs will influence the direction of property in the years ahead.

time to read

4 mins

January 25, 2026

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Parenting forecast #1: Emotional regulation becomes a core parenting skill

From clinical practice and everyday interactions with families, there is growing awareness among parents that discipline and guidance cannot come solely from authority, rules, or reaction.

time to read

1 mins

January 25, 2026

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