MANILA – The central bank hiked the offering for its term deposit facility (TDF) by P10 billion for the auction today.
In an advisory Monday, the Bangko Sentral ng Pilipinas (BSP) said the seven-day facility will still be offered for P10 billion and the 28-day facility for P20 billion, same as last week.
However, offering for the 14-day facility was increased to P20 billion from P10 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 P80-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 which has been implemented since June 2016. It is targeted to mop up excess liquidity in the economy. (PNA)
