The Bangko Sentral ng Pilipinas has announced new interest rates for its Discount Window Facility, effective February 23, 2026, providing banks with an updated benchmark for short-term peso liquidity as market conditions continue to evolve.
Under the revised structure, peso loans with maturities ranging from one to 90 days will carry an interest rate of 5.3430 percent, while loans with longer tenors of 91 to 180 days will be priced at 5.4360 percent.
The adjustment reflects the prevailing Bangko Sentral Overnight Lending Rate, which serves as the foundation for pricing emergency and contingency funding for financial institutions.
The central bank emphasized that these rates are not fixed in the long term. The applicable spread over the overnight lending rate may be adjusted periodically, depending on shifts in monetary policy objectives and movements in broader market interest rates.
This flexibility allows the BSP to fine-tune liquidity conditions while ensuring that the discount window remains a backstop facility rather than a primary source of funding.
The Discount Window Facility plays a critical role in safeguarding financial stability by giving banks access to short-term funds during periods of temporary liquidity strain. By recalibrating rates in line with its policy stance, the BSP signals its continued vigilance in balancing inflation control, financial system resilience, and orderly market functioning.
For banks, the updated rates serve as both a cost reference and a policy signal, reinforcing the importance of prudent liquidity management amid a still-tight interest rate environment.