Here’s What We Know 

• BSP Cuts Rates to 5.000%, Finding the “Sweet Spot”
  The Bangko Sentral ng Pilipinas (BSP) has trimmed its key interest rate to 5.000%, calling it the economy’s “Goldilocks” level—not too hot, not too cold. In other words, inflation is cooling, growth is steady, and the balance feels just right. BSP Governor Eli Remolona hinted that unless things take a turn (perhaps exports are slumping), we probably won’t see another cut this year. 
  
  

• The Economy Grows 5.5% in Q2, Beating Expectations
  The numbers are in: the Philippine economy expanded 5.5% year-on-year from April to June, just a touch above forecasts. Agriculture led the charge (+7.0%), services kept buzzing (+6.9%), and government spending surged (+8.7%). Even household consumption stayed strong at +5.5%. The big picture? Despite global trade tensions and US tariffs making headlines, the Philippines is proving resilient, powered by Filipinos’ everyday spending and steady jobs.
  
  

• SEC Takes Aim at Unlicensed Crypto Platforms
  The Securities and Exchange Commission (SEC) recently reminded the public that 10 crypto platforms are operating without the proper licenses, underlining their inclusion in their new regulations (which took effect last July 5). The SEC now requires firms to secure authorization before offering crypto asset services, such as having anti-money laundering systems, reporting suspicious transactions, and conducting proper customer checks. Without these checks, firms are not allowed to provide crypto services to their customers. 
  
  

• Digital Bank Adoption in the Philippines Continues Its Growth
  As of Q2 2025, total deposits for digital banks grew by 32.3% year-on-year, over 6x deposit growth of traditional banks. Digital banks also remain highly liquid with a total industry loan-to-deposit ratio of 50%, with the majority of funding deployed in high quality liquid assets. 

Why It Matters for You 

• What is the BSP trying to achieve: You may wonder what the BSP is trying to achieve when they adjust interest rates, and you might also have heard of terms thrown around like “dovish” and “hawkish” — of which are related to this (find the definitions below). They are looking for this “sweet spot” because it’s about striking a balance: where rates are low enough to make borrowing and spending easier, but not too low that they risk pushing prices higher later. In addition, inflation rate has also been reported to have reached its lowest since October 2019 this July. In short, it’s meant to keep the economy moving while keeping everyday costs manageable for consumers. With rates at this “sweet spot,” loans and savings rate could stay consistent for the rest of the year. 
  
  
• Economic Stability: The 5.5% Gross Domestic Product (GDP) growth shows that even with global uncertainty, the Philippine economy is holding its own. That’s good news for jobs, businesses, and everyday life. 
  
  
• Crypto Safety Check: For anyone exploring crypto, this is a good cue to double-check that your chosen platform is registered as a VASP (Virtual Asset Service Provider) or CASP (Crypto Asset Service Provider). Licensed crypto providers are required to follow rules that protect your money and keep your transactions secure. Choosing them gives you peace of mind that your funds are handled responsibly, and that someone has your back in case something goes wrong. Stay tuned — a new crypto platform might be on the horizon. 

All in all, August’s market story is one of balance. It’s a reminder that even with shifting global winds, the Philippines is finding its footing—and regulators are keeping watch! 

Key Terms, Explained

• Dovish: When the central bank is more focused on supporting growth and jobs. A “dovish” stance usually means lowering interest rates, which makes borrowing cheaper and can boost spending, but may also allow prices to creep up later. 
• Hawkish: When the central bank is more focused on fighting inflation. A “hawkish” stance usually means keeping interest rates high, which makes borrowing more expensive but helps stop everyday prices from rising too fast. 
• VASP (Virtual Asset Service Provider): A licensed company that can legally and securely handle crypto trades and services as regulated by the BSP. 
• CASP (Crypto Asset Service Provider): Similarly, this is a license for those regulated by the SEC to those looking to market, promote, or distribute cryptocurrency in their platforms.  
• Loan-to-Deposit Ratio (LDR): This refers to how much of a bank’s total deposit is being used as loans for their customers. This is closely monitored by the BSP for customer protection. Banks must balance deposits between ensuring customers can always access their money, using it for loans to customers, or investing it themselves.