BSP may halt easing on Sept inflation–ANZ By Cai U. Ordinario
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BIÑAN BAGS DOUBLE PEARL HONORS Mayor Angelo Alonte, Councilor Ingrid Almeda, and the Biñan City Culture, History, Arts and Tourism Office (BCHATO) led by Dr. BJ Borja proudly hold the city’s twin Grand Champion trophies after Biñan won big at the 2025 ATOP National Tourism Pearl Awards held in Baguio City. The Puto Latik Festival was hailed Best Cultural Festival (Independent Component City Category), while the Dulambayan Biñan Theater Arts Festival earned the Best Program for Culture and the Arts award—cementing Biñan’s status as a consistent Pearl Awards powerhouse and a leading hub for culture and tourism in Southern Luzon. Story in Economy, A4.
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ORE expensive rice and fuel may have increased the country’s inflation rate in September and could prompt the Bangko Sentral ng Pilipinas (BSP) to hit the brakes on its monetary policy easing this week. This was according to ANZ Research, which said the country’s September inflation print could increase to 2.1 percent. While this is still within the BSP’s 2 to 4 percent inflation target, this is significantly higher than the 1.5 percent posted in August and 1.9 percent recorded in September 2024. Given this, ANZ Research said this could prevent the Monetary Board
from reducing policy rates further. This means the country’s key interest rates could stay at 5 percent. “The BSP has so far lowered rates by a cumulative 150 bp [basis point] in the current cutting cycle. At its last meeting, the central bank characterized the current policy rate as appropriate given manageable inflation and output near potential,” ANZ Research said. “However, real rates remain restrictive amid subdued inflation. We think that the BSP will wait for the Q3 [third quarter] GDP data, out in November, before cutting rates by another 25 bp in December,” it added. ANZ Research said, however, noted that while key policy rates
have been reduced by 150 bps, it has not translated into lower interest rates for local Filipinos. Citing BSP data, ANZ Research said, non-performing loans remained above prepandemic levels. Consumer loans in Asian countries like the Philippines still account for 22–29 percent of total loans. “In these economies, sustained stress in this segment is likely dampening monetary policy transmission, particularly through the lending channel,” ANZ Research said. The think tank said lending standards in the Philippines have become more stringent. ANZ Research said “banks in both economies [India and the Philippines] are surprisingly cautiously optimistic about a recovery in
demand for loans.” Earlier, the BSP reported that loans extended by Universal and Commercial Banks (UKBs) posted their slowest growth in nine months. BSP data showed loans from UKBs grew 11.2 percent in August 2025, the slowest since the 11.1 percent posted in November 2024. In April 2025, these loans also grew 11.2 percent. The data showed that after adjusting for seasonal fluctuations, outstanding UKB loans increased by 0.4 percent month-on-month in August. (See: https://businessmirror.com.ph/2025/10/03/ukbloans-post-slowest-growth-in9-months).
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DEBT SERVICE PEAKS AT ₧664.7B IN AUG, UP 257% www.businessmirror.com.ph
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Monday, October 6, 2025 Vol. 20 No. 358
P25.00 nationwide | 2 sections 20 pages | 7 DAYS A WEEK
By Reine Juvierre S. Alberto @reine_alberto
HE government’s debt service bill reached its peak in August, as it more than tripled year-onyear to P664.720 billion, bloated by higher amortization. Latest data from the Bureau of the Treasury (BTr) showed the government’s debt payments soared by 256.96 percent to P664.720 billion in August this year from P186.218 billion in the same month last year. Amortization, or principal payments, rose by three and a half times to P601.615 billion in August from P133.437 billion a year ago. About P597.885 billion of the amortization was settled with domestic creditors, a 389.93-percent surge from a year earlier, while
payments to foreign financiers fell by 67.29 percent to P3.730 billion. Meanwhile, interest payments jumped by 19.56 percent to P63.105 billion in August from P52.781 billion a year ago. Of the total, P46.377 billion went to local lenders, up by 17.82 percent from P39.361 billion. The remaining P16.728 billion was paid to external backers, a 24.65-percent increase from P13.420 billion. See “Debt,” A8
SEPT. 30: THE NIGHT WE HELD OUR BREATH AS CEBU SHOOK By John Eiron R. Francisco
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EBU CITY—The massive chandeliers hanging from the ballroom ceiling began to sway, their crystals clinking against each other. Wine glasses on the tables rattled, wobbled, and fell to the floor and that was when fear began to rise inside us. Just hours earlier, on September 30, the ballroom of a five-star hotel in this city was filled with pride and excitement. Beauty queens from around the world walked with grace, proudly wearing Filipino terno dresses
that earned smiles, cheers, and applause. It was the benefit fashion gala of Miss Asia Pacific International (MAPI) 2025, with proceeds from its charity auction pledged to Operation Smile Philippines Foundation to fund surgeries for children born with cleft lip and palate. Guests clapped, cameras flashed, and the atmosphere felt like a perfect celebration of culture and compassion. But two hours before midnight, the elegance of the night turned into panic. See “Sept. 30,” A2
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FOOD INDUSTRY ASIA’S MATT KOVAC ON FRONT-OF-PACK LABELS HOW SIMPLE NUTRITION CUES CAN GUIDE SMARTER, HEALTHIER CONSUMER CHOICES »B1
PALAY AND PREJUDICE A farmer dries his palay under the sun, hoping a dealer will buy the grains he salvaged from the recent typhoon. As many farmers struggle to sell their harvest at fair prices, Senator Francis “Kiko” Pangilinan is pushing for an executive order—crafted with Malacañang and the Department of Agriculture—that will empower local government units to set a minimum floor price for government purchases of palay. The measure aims to stabilize palay prices and protect farmers from exploitative traders. Story in Agriculture page, A9. NONIE REYES
Cebu quake toll hits 71; search, rescue ramped up By Jonathan L. Mayuga
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HE reported death toll of the September 30 magnitude 6.9 earthquake in Cebu has gone up to 71, the National Disaster Risk Reduction and Management Council said. However, the agency said in its Sunday morning situation report that the count is still up for validation. In the same report, the NDRRMC said 559 were reported injured, but the number is also still up validation. NDRRMC added that 128,464 families or 455,631 individuals were affected by the earthquake. A total of 405 families of 1,251 individuals are now housed in four evacuation centers. The agency said eight road sec-
tions and 15 bridges were affected, with four roads and seven bridges remaining still unpassable on Sunday morning. Power, NDRRMC said, has been restored in 43 localities but 48 towns and cities remain without electricity also as of Sunday morning. The tremblor, NDRRMC said also affected communication facilities in 17 towns and cities and service has been restored in seven. Of the three seaports affected, one has already become operational, it added.
Navy brings in materials
THE Navy (PN) on Sunday announced that one of its transport vessels, the BRP Agta (LC-290) successfully conducted a humanitarian assistance and disaster response
(HADR) and brought 44.66 tons of construction materials were transported to th similarly devastated Masbate City, Masbate on October. 4. The Navy Public Affairs Office chief, Capt. Benjo Negranza, said the hip departed Ouano Wharf, Mandaue City, Cebu on October 3, carrying essential construction materials intended to support the recovery and rehabilitation of communities severely affected by Severe Tropical Storm Opong. This mission was made possible through the support of the Tanging Yaman Foundation, Incorporated, which coordinated with the PN to deliver much-needed aid to the disaster-stricken areas, Negranza added. Meanwhile, Negranza said another PN vessel, the BRP Dagupan City (LS-551), departed Cavite on
October 4, carrying 18,000 kilograms of relief goods bound for communities affected by the recent 6.9-magnitude earthquake that struck Cebu and nearby provinces. Onboard are food packs, bottled water, hygiene kits, sleeping mats, and other essential relief items consolidated by the Civil Military Operations Group of the Navy (CMOG-PN) through the generous donations of private stakeholders and partner organizations. This effort forms part of the Navy’s HADR mission to support earthquake-stricken areas. BRP Dagupan City also transported one chemical truck, two mobile showers, one disaster response truck, two ambulances, and one special rescue vehicle provided See “Cebu,” A2
PESO EXCHANGE RATES n US 58.1490 n JAPAN 0.3951 n UK 78.1813 n HK 7.4719 n CHINA 8.1649 n SINGAPORE 45.1222 n AUSTRALIA 38.3493 n EU 68.1448 n KOREA 0.0413 n SAUDI ARABIA 15.5055 Source: BSP (October 3, 2025)