BSP to offer P100-B under term deposit facility

MANILA -- The Bangko Sentral ng Pilipinas (BSP) will offer PHP100 billion under its term deposit facility (TDF) during the auction on August 22, 2019.

In an advisory, the central bank said the six-day facility, a day shorter than the regular tenor because of the holiday on Wednesday, will be offered for PHP40 billion.

Both the 13-day and 27-day facilities, also a day shorter than regular tenor, will be offered for PHP30 billion.

During the TDF auction last August 14, rate of all tenors declined which the BSP, in a statement, traced to the reduction in the central bank’s policy rates last August 8.

BSP’s policy-making Monetary Board (MB) reduced the central bank’s key policy rates by 25 basis points on sustained drop in domestic inflation rate, and

outlook that growth of the domestic economy remains firm despite the weaker output in the first half of the year.

Domestic growth, as

measured by gross domestic product (GDP), averaged at 5.5 percent in the first half of this year, lower than the government’s fullyear target of 6 to 7 percent.

Economic managers are confident that the domestic growth will recover in the second half of the year and hit the government’s growth target. (PNA)