The Bangko Sentral ng Pilipinas (BSP) has announced the updated interest rates for its Discount Window Facility (DWF), effective January 8, 2026, providing banks with a revised benchmark for short- to medium-term liquidity support.
Under the new schedule, peso-denominated loans with maturities of one to 90 days will carry an interest rate of 5.6177 percent, while loans with terms of 91 to 180 days will be priced at 5.7354 percent.
The BSP said peso DWF rates continue to be anchored on the central bank’s overnight lending rate, ensuring alignment with its prevailing monetary policy stance.
For US dollar-denominated loans, the BSP set a uniform rate of 6.15170 percent across all maturities, covering one to 90 days, 91 to 180 days, and 181 to 360 days.
Similarly, Japanese yen-denominated DWF loans will be subject to tiered rates, with 2.83375 percent for one to 90 days, 2.88250 percent for 91 to 180 days, and 3.00625 percent for 181 to 360 days.
The central bank noted that foreign currency DWF rates are benchmark-based, reflecting prevailing conditions in international financial markets. These benchmarks serve as reference points to ensure that BSP lending rates remain consistent with global interest rate movements.
The BSP also emphasized that the applicable spreads on DWF interest rates may be adjusted periodically. Such changes are intended to complement shifts in monetary policy objectives and respond to evolving market interest rate conditions.
The Discount Window Facility remains a key liquidity backstop for banks, enabling them to access short-term funding when market sources are constrained. By updating DWF rates, the BSP aims to maintain orderly financial conditions while reinforcing the transmission of its monetary policy decisions across the banking system.