MANILA -- The Bangko Sentral ng Pilipinas (BSP) hiked by PHP10 billion the offering for its term deposit facility (TDF) for the auction on Wednesday.
In an advisory Monday, the central bank said the seven-day facility will still be offered for PHP10 billion and the 28-day facility for PHP20 billion, same as last week.
However, offering for the 14-day facility was increased to PHP20 billion from PHP10 billion in the previous week’s auction.
The change may be attributed to the strong demand in last week’s auction, wherein both the seven- and 14-day TDF attracted bids that were more than twice the offer volume.
On the other hand, the offer volume in last week’s auction was reduced from the total of PHP80 billion offer in the previous week.
BSP Deputy Governor Francisco Dakila Jr. earlier attributed this decision to “anticipation of lower excess liquidity to be siphoned from the financial system owing to month-end tax-remittances.”
TDF is part of the BSP’s Interest Rate Corridor (IRC) which has been implemented since June 2016. It is targeted to mop up excess liquidity in the economy. (PNA)
