Published May 12, 2021, 5:13 PM
The Monetary Board of the Bangko Sentral ng Pilipinas (BSP) decided on Wednesday (May 12) to maintain its two percent interest rates on the overnight deposit and lending facilities while revising inflation outlook lower as food price pressures have eased.
BSP Governor Benjamin E. Diokno, also the Monetary Board chairman, said that the decision to keep its policy stance as is was based on the improved weather conditions which tempered food prices, the impact of Executive Orders No. 128 and 133, and the government’s direct non-monetary interventions to address supply constraints.
“The Monetary Board believes that sustained support for domestic demand remains a priority for monetary policy, especially as risk aversion continues to hamper credit activity despite ample liquidity in the financial system,” he said.
Published May 12, 2021, 6:12 PM
The term deposit facility (TDF) auction on Wednesday attracted mixed tenders while yields continued to drop.
Based on Bangko Sentral ng Pilipinas (BSP) data, the 7-day TDF was still offered at P150 billion, received P160.20 billion bids, higher than P157.38 billion last week. Its average rate fell to 1.7253 percent versus 1.7314 percent last May 5. Its bid coverage ratio also dropped to 1.0680 from 1.1824.
The 14-day TDF also has a higher offer of P370 billion from P360 billion last week. Tenders received amounted to P368.45 billion which was below the offer volume. This was also lower than last week’s P425.68 billion.
Published May 8, 2021, 6:00 AM
The auction of Bangko Sentral ng Pilipinas (BSP) securities continue to be oversubscribed while the yield dropped anew ahead of next week’s Monetary Board policy meeting.
BSP Deputy Governor Francisco G. Dakila Jr. said Friday that the 28-day BSP bills auction attracted P116.02 billion bids against offer of P100 billion. “(The offered amount) was awarded in full amid strong demand from market participants,” he said. (Bloomberg FILE PHOTO)
The demand for BSP bills resulted in the continued decline in the weighted average interest rate which fell to 1.7833 percent or 2.190 basis points lower than April 30’s 1.8052 percent, noted Dakila.
Published May 6, 2021, 5:00 AM
The central bank’s term deposit facility (TDF) has a higher offered volume this week of P510 billion versus P490 billion on April 28, but yields were still down as banks await the decision of the Monetary Board’s policy meeting next Thursday.
Based on Bangko Sentral ng Pilipinas (BSP) numbers, total tenders on Wednesday reached P583.06 billion, higher than last week’s P546.57 billion.
The 7-day TDF was offered at P150 billion, P10 billion more than last week’s auction. It attracted P157.38 billion bids, lower than P174.27 billion previously. Bid coverage ratio was at 1.1824. The shorter tenor’s average interest rate fell to 1.7314 percent from 1.7411 percent last week.
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