MANILA -- The Bangko Sentral ng Pilipinas (BSP) has shortened the lead time for announcements of term deposit facility (TDF) volume from seven days to only two days, effective July.
In an advisory Wednesday, the central bank said this adjustment was made “in response to the feedback received from BSP counterparties in previous consultations.”
“Thus, the TDF offer volumes per tenor for the auction scheduled on 3 July 2019 (Wednesday) will be posted on 1 July 2019 (Monday),” it said.
The BSP explained that this change is in line with efforts to enhance the conduct of the central bank’s monetary operations.
The shorter lead time, it said, will ensure “that auction volumes are based on latest information on market liquidity conditions.”
The TDF targets to siphon off excess liquidity from the domestic economy. It has been implemented since June 2016, when the central bank shifted to the interest rate corridor framework to bring market rates closer to the BSP’s policy rate. (PNA)
