Property Market Watch: BSP May Keep Hiking Rates Through Yearend
Analysts warn continued tightening could push mortgage costs higher for homebuyers
Written by PropVela Editorial TeamPublished 1 min read
Today's roundup zeroes in on a single but consequential development for property buyers and developers: signs that the central bank's rate-hiking cycle isn't done yet.
BSP seen to extend tightening cycle until yearend
Analysts believe the Bangko Sentral ng Pilipinas could keep raising interest rates through the rest of 2026 as an upcoming minimum wage increase and the US Federal Reserve's recent hawkish turn threaten to stoke inflation further. University of Asia and the Pacific economist Marco Antonio C. Agonia reportedly expects two more 25-basis-point hikes this year, citing pressure from wage increases, the Fed's restrictive stance, and the possibility of a severe El Niño episode. The Fed itself recently lifted its benchmark rate by 25 bps for the first time in three years, widening the gap between US and Philippine policy rates to 100-125 bps. For the property sector, prolonged tightening typically means costlier mortgages and higher financing expenses for developers, potentially cooling demand and slowing project pipelines. According to BusinessWorld, the trajectory of these rate decisions will be closely watched by both homebuyers and industry players in the coming months.