As 2025 draws to a close, several key developments shaped the Philippine economy—from easing interest rates and changing investment trends to the continued rise of the digital economy.

Here’s a simple look back at the biggest market stories this year and what they mean as we head into the new year.

• BSP cuts rates again in December
  The Bangko Sentral ng Pilipinas (BSP) started in 2025 with its key policy rate at 5.75%, keeping its rate as is, as it closely monitored key indicators for a change.
  
  As price pressures eased and economic growth slowed, the BSP gradually reduced interest rates throughout the year. With its final cut on December 11, the policy rate ended 2025 at 4.5%—a total reduction of 125 basis points for the year.
  
  This series of cuts reflects a shift in focus from controlling inflation to supporting economic activity, making borrowing more affordable for households and businesses.
  
  

• A Mixed Year for Markets
  The Philippine stock market faced challenges in 2025, with the PSEi (Philippine Stock Exchange Composite Index) expected to end the year below earlier projections and last year’s levels. Global uncertainties and local developments affected foreign investor confidence, leading many overseas investors to remain cautious.
  
  Crypto looked on pace to be the opposite, reaching record highs in October for Bitcoin, but since then, it’s also been a downward trend until the last month of the year. The overall market’s performance is currently indexed below 2024 numbers. Key factors said to be affecting investors include Federal Reserve (U.S. Central Bank) interest rate cut, the AI industry’s performance, and the aftermath of the market crash in October due to trade developments between President Trump and China.
  
  

• Digital Economy and Digital Banking: Growth Continues
  The BSP’s latest Q3 data shows that digital banks continue to outgrow all other bank types, with the gap becoming even clearer on a year-on-year basis. Versus the same period last year, digital bank deposit accounts nearly doubled. This rapid expansion in accounts was matched by strong balance growth, with digital bank deposits increasing by ~37% year-on-year, the fastest among all bank categories.
  
  More signals of the Philippine digital economy were seen this year as the country is on track to reach around US$36 billion in gross merchandise value (GMV) caused by the growth of e-commerce, online services, and digital financial tools in the country according to 10th edition of the e-Conomy SEA 2025 Report. Some of the key contributors to this growth included a 90% increase in video commerce (interactive video content for e-commerce), and the second-fastest digital payment growth in Southeast Asia. As cashless transactions become more common, payment methods such as Google Pay with GoTyme Bank are increasingly part of everyday life.

Learn more about it here: GoTyme Bank.

Taken together, these developments show how the economy evolved this year—and offer a few key lessons:

• Monetary policy matters. Changes in BSP interest rates can affect how we save, borrow, spend, and even how businesses operate. With rates easing this year, loans became more affordable, encouraging spending and economic activity, even as savings rates gradually adjusted.
  
  
• Markets don’t always move in the same direction. In 2025, stocks and crypto faced challenges at different times. While both reached lows at different points in the year, crypto’s downturn came shortly after a strong high. This highlights the importance of having a clear investment strategy, maintaining diversification, and taking a long-term approach when investing.
  
  
• The digital economy is here to stay. Digital banking and payments continued to grow, offering more convenient, secure, and accessible ways to manage money.

As we wrap up 2025, this year’s market movements remind us that the economy is always evolving. From interest rate shifts to changing investment trends and the continued rise of digital banking, staying informed can help you make smarter money decisions.

Thank you for following Market News with us this year. Wishing all GoTymers a restful holiday season—and a financially confident year ahead.

Key Terms Explained

• Policy rate – The interest rate set by the BSP that influences borrowing and saving costs in the economy.
  
  
• PSEi – The main stock market index in the Philippines, tracking the performance of the top listed companies, to get an idea of how the overall market is performing.
  
  
• GMV (Gross Merchandise Value) – The total value of goods and services sold through digital platforms.